The Indian government is poring over the fine print of fresh US tariffs aimed at buyers of Russian oil, Commerce Minister Piyush Goyal said on Monday, as a fragile balance in New Delhi’s foreign policy comes under renewed strain.
Washington last week cleared a sweeping sanctions-and-tariffs package that arms President Donald Trump with the power to slap duties of up to 100% on India, China and any other country that keeps leaning on Russian energy. For India, which has turned cut‑price Russian crude into an economic lifeline since the invasion of Ukraine, the move lands right at the heart of its energy and trade strategy.
India caught between Moscow’s oil and Washington’s ire
India’s partnership with Russia has only deepened during the Ukraine war, driven by a surge in oil imports that has helped cushion the Indian economy against global price shocks. The same story cannot be told about India’s ties with the US under Prime Minister Narendra Modi.
Those relations have been repeatedly tested by New Delhi’s refusal to fall in line with Western sanctions on Moscow. Last August, Trump responded with an extra 25% tariff on Indian imports, specifically linked to India’s Russian oil purchases. That was on top of an already‑imposed 25% reciprocal tariff.
The pressure finally eased earlier this year. In February 2026, Washington rolled back the additional Russia‑related tariff and trimmed the reciprocal duty to 18% as part of a broader US‑India trade framework. It was billed as a reset, a chance to rebuild trust and move toward a landmark bilateral trade deal.
That deal still hasn’t arrived.
The much‑touted agreement remains stuck in limbo, with no major breakthrough to show. Trade experts now see the new tariff threat as another lever in Washington’s hand, a tool to squeeze concessions from New Delhi on market access, digital rules and strategic alignment, while keeping the option of punishing duties on the table.
For India, the calculation is becoming sharper. Russian barrels have been a bargain that New Delhi is reluctant to give up. But every shipload now carries a growing diplomatic cost. How long India can keep straddling both worlds — cheap Russian crude on one side, a wary but indispensable US partner on the other — is the question hanging over South Block.
