Categories: US

India Slapped with 50% US Tariff, Trump’s Russian Oil Logic on Shaky Ground

India and Brazil face 50% US tariffs, partly as a “penalty” for Russian oil imports. Critics highlight inconsistencies, as China and Europe also buy Russian crude without equal treatment, suggesting Trump’s move is a negotiation tactic.

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India now ranks among the top two nations facing the steepest US trade tariffs under President Donald Trump’s latest measures, alongside Brazil, both hit with duties of 50% on exports to America.

For India, an initial 25% tariff has already been implemented, while the second half, described by Trump as a 'penalty' for buying Russian oil will come into force on August 28, exactly 21 days later.

According to a New York Times list of top tariff rates, Syria follows at 41%, with Laos and Myanmar tied at 40%. India, however, is by far the largest economy among these five.

Trump’s Rationale Faces Questions

Trump has claimed that countries purchasing Russian crude are 'fueling the war machine' against Ukraine. This reasoning, however, has faced pushback, with critics pointing out that European countries also import Russian oil, while China, the world’s biggest buyer has not been hit with similar punitive rates.

US Commerce Secretary Howard Lutnick even suggested that a trade deal with China, currently facing a lower 10-30% tariff range, could see its negotiation deadline extended by another 90 days.

In contrast, India has found itself squarely in Trump’s crosshairs. “Sovereign countries have the right to choose their own trade partners,” Russian spokesperson Dmitry Peskov told AFP, backing New Delhi’s position.

Diplomatic Reactions

Prime Minister Narendra Modi discussed the issue with Brazilian President Luiz Inácio Lula da Silva over a phone call on Thursday. While Lula has been openly combative toward Trump, India has consistently argued that Washington’s move lacks consistency.

China has also voiced support. The Chinese ambassador to India, Xu Feihong, appeared to take a swipe at Trump in an X post coinciding with the first round of India tariffs taking effect: 'Give the bully an inch, he will take a mile'.

Both Russia and China have either sided with or acknowledged India’s stance, seeing it as part of a broader push to counterbalance US influence in a shifting multipolar world.

Negotiation Tool or Punishment?

Many trade experts believe the tariffs are less about punishment and more about negotiation leverage.

“Other countries such as China, and the European Union, even the US itself, have been importing Russian oil and other commodities,” Shashi Mathews, partner at CMS INDUSLAW, told Financial Express.

“It appears that this was more of a negotiating tactic…to gain leverage in the ongoing trade negotiations, considering the tariffs kick in 21 days later,” he added.

Trump is planning to meet Russian President Vladimir Putin in the coming weeks, with the Ukraine war expected to be a key topic. Any agreement there could further undermine his Russian-Oil justification for these punitive tariffs.

Published by Drishya Madhur