India Is Again Squeezed Between the Threat of Trump Tariffs and Russian Oil

A new sanctions law giving President Trump broad authority to impose steep tariffs on countries that buy Russian oil adds a new layer of uncertainty to India’s already fraught trade relationship with the United States.The bill, signed by President Trump on Friday, gives him the power to impose tariffs of up to 100 percent on goods from countries that continue to buy Russian energy.The aim of Congress was to choke off the revenue that finances Moscow’s war in Ukraine.The law, however, gives Mr.

Trump considerable discretion over when and how to wield those tariffs, and it’s not clear when — or even whether — he would impose tariffs that would raise the cost of American imports of Indian goods.To India, the law is seen as a threat, potentially increasing Mr.Trump’s leverage even as he explores business deals with Russia.The timing puts the Indian prime minister, Narendra Modi, in a tight spot.

India imports more than 90 percent of the crude oil it consumes, and its reliance on Russia has climbed again as the war in Iran has disrupted supplies from the Middle East.Russian crude accounted for roughly half of India’s imports this summer, according to Kpler, a global maritime data company.The new law is the latest in a series of shifting American policies that have repeatedly forced India to adjust its Russian oil purchases.We are having trouble retrieving the article content.Please enable JavaScript in your browser settings.Thank you for your patience while we verify access.

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