Impact of Trump's Tariffs Falters in Halting Russian Oil Exports to India
The United States has imposed a 50% effective tariff on most Indian imports, targeting Russia-related imports, as part of a broader framework to pressure third countries that import Russian oil [1][2][3]. This move comes as India's imports of Russian crude oil have increased to about 2 million barrels per day, accounting for roughly 38% of India’s total crude imports [1][2].
India's continued Russian oil imports are driven by economic reasons, as Russia offers discounted crude, helping India manage inflation and its fiscal budget sensitive to oil price fluctuations, and also serve India's geopolitical interest in maintaining strategic autonomy from Western pressure [2]. Despite the US tariffs, there has been no official directive from the Indian government for refiners to curtail Russian crude purchases, and shipments booked before these tariffs will not reflect impact until late September or beyond [1].
The broad continuation of Russian oil imports signals India’s determination to balance economic benefits and energy security against mounting US pressure and tariffs [1][2]. India exploits the price arbitrage to refine discounted Russian crude into diesel and jet fuel for both domestic use and exports, including to Europe, which faces shortages due to embargoes on Russian refined products [2].
The strategic relationship between India and Russia in the oil sector remains robust. India's prime minister has pledged to "never compromise" in the face of Washington's tariffs [4]. The Israeli plan to take over Gaza, aimed at completely destroying Hamas and securing hostage releases, threatens the unity of the Israeli government, with the country's influential finance minister saying he had "lost faith" in Prime Minister Benjamin Netanyahu [5].
Meanwhile, wildfires across parts of Canada, the US, and southern France have caused significant damage and sparked warnings of the impact of extreme weather events. Energy producers are being paid not to produce energy and consumers paid to use it as Europe's grids fail to keep up with the growth of renewable energy systems [6].
In other news, the Trump administration is taking an increasingly interventionist stance on US tech exports, and a preliminary study of more than 15,500 people has revealed possible genetic clues to a common but overlooked condition called myalgic encephalomyelitis/chronic fatigue syndrome [7][8].
References:
- Bloomberg
- Reuters
- The Hindu
- NDTV
- Al Jazeera
- The Guardian
- NPR
- Science Daily
The strategic relationship between India and Russia in the oil sector remains robust, with India's prime minister vowing to "never compromise" in the face of Washington's tariffs. Meanwhile, the Indian government has not issued an official directive for refiners to curtail Russian crude purchases, despite US tariffs. India exploits the price arbitrage to refine discounted Russian crude into diesel and jet fuel, a move that serves both India's domestic needs and its exports, including to Europe. In the realm of technology, the Trump administration is taking an increasingly interventionist stance on US tech exports. A preliminary study of over 15,500 people has revealed possible genetic clues to a common but overlooked condition called myalgic encephalomyelitis/chronic fatigue syndrome, a finding that falls under the domain of health-and-wellness and general-news.
