On Wednesday, US President Donald Trump imposed a steep 50% tariff on Indian imports, citing India's Russian oil purchases. The transfer triggered robust diplomatic protests from New Delhi, which labelled the choice “unfair, unjustified and unreasonable.”
India defends power safety selections
“These figures solely vindicate India's emphasis on guaranteeing its residents common and reasonably priced power provides,” a authorities supply advised TOI, requesting anonymity.
India argued that it's being singled out for actions undertaken by a number of others, together with allies of the US. “America has in latest days focused India's oil imports from Russia. We now have already made clear our place on these points, together with the truth that our imports are based mostly on market elements and carried out with the general goal of guaranteeing the power safety of 1.4 billion folks of India,” stated an official assertion from the Indian authorities.
“India will take all actions essential to guard its nationwide pursuits.”
President Trump had earlier warned of tariff hikes in opposition to India, accusing New Delhi of undermining international efforts to limit Russia's power revenues. With the brand new government order, India now faces the best US tariff burden on this planet, tied with Brazil at 50%. Different nations within the higher tariff bracket embody Switzerland (39%), Canada and Iraq (35%), and China (30%).
G7+ tankers enhance Russian oil flows
In keeping with CREA, the share of G7+ tankers transporting Russian oil rose from 36% in January to 56% by June. “Since Jan, the G7+ share in Russian oil transport has elevated from 36% to 56%,” the report says. In June alone, over half of Russia's seaborne oil exports have been moved utilizing G7+ tankers—a six share level rise over Might.These tankers observe the worth cap set by Western sanctions, indicating ongoing commerce flows aligned with Western guidelines, regardless of political rhetoric.
China stays largest purchaser, escapes penalties
Whereas India faces contemporary tariffs, China has to date averted comparable punitive motion regardless of being the most important importer of Russian power. In 2024, Russian oil accounted for 21.5% of China's complete crude oil imports, up from 15.5% within the 2018–2021 interval. This was pushed by smaller unbiased refiners in China, often called “teapot” refineries, which profit from discounted Russian crude.
China additionally elevated its Russian liquefied pure gasoline (LNG) imports by 3.3% final yr, reaching 8.3 million metric tonnes. Although talks are ongoing for a proposed pipeline to provide Russian gasoline to China, a deal is but to be finalised.
EU's ongoing commerce with Russia underlines contradictions
The CREA report exhibits that Russia earned EUR 923 billion from fossil gas exports for the reason that Ukraine warfare started. Of this, EU nations paid EUR 212 billion, China over EUR 200 billion, and India EUR 121 billion. The EU has additionally imported fertilizers, chemical substances, iron, metal, and transport gear from Russia throughout this era.
Regardless of the EU's public stand on slicing ties with Russia, the bloc's complete commerce with Russia was nonetheless EUR 67.5 billion ($77.9 billion) in 2024. The EU paid Russia $105.6 billion for gasoline alone since 2022—an quantity equal to almost 75% of Russia's navy spending in 2024.
Imports of Russian LNG by the EU rose 9% in 2024, and Belgium's Russian LNG purchases elevated by 12% in June, reaching EUR 300 million.
India-US commerce imbalance provides pressure
The tariff hike comes regardless of robust commerce ties between the 2 nations. The US was India's largest export vacation spot in 2024, importing $87 billion price of Indian items. In distinction, India imported $41 billion price of US items, leading to a $46 billion commerce surplus in India's favour.
Russia backs India, criticises US transfer
Moscow got here out in assist of India following the tariff determination. “Sovereign nations have the precise to decide on their very own commerce companions,” Kremlin spokesperson Dmitry Peskov advised AFP.
US maintains restricted Russia commerce
Regardless of Washington's robust sanctions posture, US-Russia commerce was price $5.2 billion in 2024. Though decrease than the $36 billion recorded in 2021, the US continues to import Russian chemical substances and different items.
In keeping with CREA, “Russian fossil gas revenues in second quarter of 2025 dropped by 18% year-on-year – lowest in 1 / 4 for the reason that invasion of Ukraine.” This decline occurred regardless that export volumes rose 8% in Q2 in comparison with Q1 of 2025.
