India warns new US tariffs over Russian oil could hit ties, vows to protect energy security
New Delhi’s response could complicate already difficult trade negotiations with Washington, while refiners seek relief to manage existing Russian oil purchases. Tourists watch marine life, with the MT Desert Kite oil tanker carrying Russian oil in the background, at Narara Marine National Park in the Arabian Sea, Gujarat, India March 11 , 2026. Reuters
India has warnedWashington that new measures to levy tariffs over the purchase of Russian oil could impact bilateral ties, the South Asian nation’sforeign ministry said on Thursday, hours after the US made a new move to punishsuch buyers.
Earlier in theday, the US House of Representatives passed a sweeping sanctions and tariffbill intended to increase economic pressure on Russia over its invasion ofUkraine.
The bill, nowsent to President Donald Trump to sign into law, authorizes him toimpose stiff tariffs of up to 100% on China, India and other countries to reduce their dependence on Russian energy.
The Indianforeign ministry said that it had noted the passage of the bill, adding that New Delhi had raised the issue with various USinterlocutors in recent months, and had “very clearly articulated” thepotential implications for the bilateral relationship and theinternational energy market.
New Delhiremains “firmly committed” to ensuring energy security for its people and willcontinue to source supplies from diverse sellers basedon market dynamics, the ministry said in a statement.
“The Indian sidehas also made clear its determination to take all necessary measures to protectits trade and economic interests,” said the ministry, adding that thegovernment would work closely with trade and industry bodies to deal with theimplications of the legislation.
India, the world’sthird-biggest oil importer, is among the biggest buyers of Russianoil, which is seen as helping Moscow replenish its budget since it launched itsfull-scale invasion of Ukraine in 2022 and was hit with sweeping Westernsanctions.
New Delhi hasrepeatedly sought to resist pressure to scale back its oil trade with Russia,saying its large population and economy need secure, affordable and reliable energy supplies.
Indian refinershave arranged oil for September and October which includes Russian oil,according to sources aware of the matter.
Two refiningsources said they want the government to take up the issue with US authoritiesas oil prices will rise sharply if Trump decides to impose new tariffs.
Oil supplieshave reduced substantially due to the war in the Middle East and cutting Russiansupplies will have a big impact on the profits of refiners as they are already selling fuels at below-market costs, the sources said.
Refiners want the government to seek some relaxation, instead ofimposing a 100% tariff, to allow them to wind down the existing transactionsand fix a quota for India to buy Russian oil, they added.
Complicating trade talks
Indian analystssay the possibility of new US tariffs on Indianexports could complicate ongoing India-US trade negotiations and potentially delayor make an agreement on a trade pact more difficult.
“Washington mayuse the tariff threat to pressure India to reduce Russian oil purchases andaccept a deeply unequal trade agreement,” said Ajay Srivastava, founder of NewDelhi-based think-tank Global Trade Research Initiative and a former tradeofficial.
After months oftalking, India and the US are yet to reach aconsensus on a trade agreement with New Delhiholding out for a better deal.
Indian TradeMinister Piyush Goyal will travel to the UnitedStates for the G20 trade ministers’ meeting later this month where he isexpected to hold a bilateral meeting with the United States TradeRepresentative Jamieson Greer and discuss the path forward forthe deal.
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