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European Union

US Tariff on Indian Exports Sparks Criticism Amid Ongoing Trade Negotiations

Strategic Insights

— 2 min read

As India grapples with a 50% US tariff on its exports, citing Russian oil imports, analysts have pointed out that Washington's move is discriminatory and violates relevant United Nations rules. Major importers like China and the EU, despite higher volumes of Russian energy purchases, face no such penalties. The US tariff kick-starts 21 days later, with some speculating it may be a negotiating tactic to gain leverage in ongoing trade negotiations. Additionally, a potential deal between US President Donald Trump and Russian counterpart Vladimir Putin could render the punitive tariff unnecessary.

Key Takeaways:

  • The US tariff on Indian exports is discriminatory, as other major importers like China and the EU face no such penalties despite higher volumes of Russian energy purchases.
  • The tariff violates relevant United Nations rules, according to analysts.
  • India imported Euro 146,696 million of fossil fuels from Russia as of August 4, significantly lower than China's Euro 265,392 million and the EU's Euro 212,493 million during the same period.
  • China imported Euro 191,277 million of Russian oil, while India's imports stood at Euro 130,392 million.
  • The EU's import of gas at Euro 104,241 million from Russia surpasses India's gas imports of just Euro 424 million from the Kremlin.
  • The EU's 18th sanctions package, effective January 2026, targets refined products made from Russian-origin crude, impacting Indian diesel exports to Europe.
  • Since the beginning of the war, Russia earned Euro 923 billion in revenue from fossil fuel exports, with the EU countries purchasing more than Euro 212 billion of these exports.
  • India has already offered to lower tariffs on almost all sectors which were in President Trump's wishlist and committed to increasing defence purchases from the US.

Statistics:

  • India's imports of EUR 146,696 million of fossil fuels from Russia as of August 4.
  • China's imports of EUR 265,392 million of fossil fuels from Russia as of August 4.
  • The EU's imports of EUR 212,493 million of Russian fossil fuels as of August 4.
  • China's import of EUR 191,277 million of Russian oil.
  • India's import of EUR 130,392 million of Russian oil.
  • The EU's import of gas at EUR 104,241 million from Russia.
  • India's gas import of EUR 424 million from Russia.

Sources:

  • Shashi Mathews, Partner, CMS INDUSLAW, quoted in the article.
  • Centre for Research on Energy and Clean Air, data on fossil fuel imports.
  • European Union, 18th sanctions package.
  • CREA's estimates of Russia's revenue from fossil fuel exports.

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