India warns new US tariffs over Russian oil could impact ties - Al Jazeera

**India warns new US tariffs over Russian oil could impact ties**

New York – The United States is preparing a sweeping tariff that could impose a 100 % duty on imports of Russian crude and refined products, a move that New Delhi says would strain the strategic partnership between the two democracies. The proposal, unveiled by the U.S. Treasury as part of a broader sanctions package aimed at curbing Moscow’s war financing, is expected to take effect later this year if Congress approves the bill. Indian officials, speaking to Al Jazeera and domestic outlets, warned that such an “extreme” measure would force India to reassess its energy procurement strategy and could have “serious repercussions” for the overall bilateral relationship.

India continues to import roughly 1 million barrels of Russian oil per day, taking advantage of discounted prices that have helped keep domestic fuel costs below global benchmarks. The Ministry of Petroleum and Natural Gas said that replacing Russian supplies with alternatives—whether from the Middle East, the United States, or increased domestic production—would raise the country’s import bill by an estimated $5‑$7 billion annually, according to Moneycontrol. Rediff reported that New Delhi is exploring short‑term options such as tapping strategic petroleum reserves and accelerating ongoing refinery upgrades, but officials stressed that a blanket tariff would “undermine the economic calculus that has underpinned our energy security for the past two years.”

Washington has reiterated that the tariff is a tool to pressure Russia, not to target friendly nations, and U.S. officials have hinted that India could apply for a waiver if it can demonstrate compliance with the broader sanctions regime. India’s Ministry of External Affairs, however, cautioned that “the imposition of a full‑scale tariff without a clear exemption pathway would be perceived as a punitive action, potentially affecting cooperation in areas ranging from defense to climate.” Both sides indicated a willingness to engage in dialogue, but the outcome will hinge on whether a mutually acceptable mechanism can be crafted before the legislation moves through Congress. The episode underscores the delicate balance India must strike between its strategic partnership with the United States and its pragmatic energy needs in a volatile global market.

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