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Tariffs

Trump Administration May Not Impose Secondary Tariffs on India Due to Increased US Energy Purchases

Strategic Insights

— 2 min read

The Trump administration is reconsidering imposing secondary tariffs on India over purchasing Russian energy due to the country's increasing imports of oil and gas from the US. US President Donald Trump said that Russia has already lost a key oil client in India, which was purchasing about 40% of its oil from Russia. The secondary 25% tariffs on India were set to come into effect from August 27, but Trump hinted that they might not be imposed, citing the potential devastating impact on Russia.

Key Takeaways:

  • The US President, Donald Trump, has hinted that the administration may not impose secondary tariffs on India over purchasing Russian energy, citing the country's increased imports of oil and gas from the US.
  • India has sharply increased its purchases of oil and gas from America, with imports jumping by as much as 51% from January to June this year.
  • The country's liquefied natural gas (LNG) imports from the US nearly doubled to $2.46 billion in the financial year 2024-25 from $1.41 billion in 2023-24.
  • Prime Minister Narendra Modi had assured in February that India would increase energy imports from the US to $25 billion in 2025 from $15 billion in 2024 to help reduce the trade deficit of the US.
  • Government-owned Indian oil and gas companies have entered into discussions for more long-term energy purchases from US companies.
  • India is diversifying its sources of energy imports to reduce dependence on Russian oil.
  • The Trump administration's consideration of not imposing secondary tariffs on India reflects the growing strategic relationship between India and the US, which goes beyond trade.

Statistics:

  • 40%: The percentage of oil India was purchasing from Russia before the Trump administration's consideration of secondary tariffs.
  • 51%: The increase in India's import of oil and gas from the US from January to June this year.
  • $2.46 billion: The value of India's liquefied natural gas (LNG) imports from the US in the financial year 2024-25.
  • $1.41 billion: The value of India's liquefied natural gas (LNG) imports from the US in the financial year 2023-24.
  • $25 billion: The target energy imports from the US that Prime Minister Narendra Modi had set for 2025.
  • $15 billion: The energy imports from the US set by Prime Minister Narendra Modi for 2024.
  • 25%: The proposed secondary tariffs on India that were set to come into effect from August 27.
  • August 27: The scheduled date for the imposition of secondary tariffs on India.
  • 2024-25: The financial year during which India's liquefied natural gas (LNG) imports from the US nearly doubled.
  • 2023-24: The financial year during which India's liquefied natural gas (LNG) imports from the US was $1.41 billion.

Sources:

  • "Trump says US may not impose secondary tariffs on India over Russian oil" by The Northlines, August 16, 2025
  • "India's oil and gas imports from US jump 51% in 6 months" by The Northlines, August 16, 2025
  • "Government enters into discussions for more long-term energy purchases from US companies" by The Northlines, August 16, 2025
  • "India to increase energy imports from US to $25 billion in 2025" by The Northlines, February 10, 2025
  • "India's liquefied natural gas imports from US nearly double to $2.46 billion in 2024-25" by The Northlines, August 16, 2025

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