Trump imposed a 50% tariff on India due to oil purchases from Russia. What the media is writing

US President Donald Trump has imposed an immediately effective tariff of 50% on imports from India. The reason was purchases of Russian oil, which have increased over the past three years. The new duty, instead of the 25% levy, could hit the entire Indian economy hard. What the media write about the trade war between New Delhi and Washington is in the Izvestia digest.

Bloomberg: Trump has imposed tariffs that are unbearable for India

Trump imposed an exorbitant 50% tariff on Indian goods to punish the country for buying Russian oil. The new duties, the highest in Asia, came into force on August 27, doubling the existing levy on Indian exports. The tariffs will affect more than 55% of goods shipped to the United States, which is India's largest market, and will hit labor-intensive industries such as textiles and jewelry the most. Key export products such as electronics and pharmaceuticals are exempt from payment, which for now allows Apple to maintain large-scale investments in new factories in India.

The high tariffs threaten India's export competitiveness compared to rivals such as China and Vietnam, and raise questions about Prime Minister Narendra Modi's ambitions to transform his country into a major manufacturing hub. Exporters of clothing, footwear, and small industrial goods such as toys are bracing for falling orders and possible job cuts.

The New York Times: how India and Russia trade oil

Moscow is under sanctions, primarily from the United States and the European Union. The West has imposed a limit on the price that Russia can charge for its oil. However, India has not signed up to this plan. After the imposition of sanctions and the closure of European and other markets for Russia, sea shipments to India began to gain momentum.

Apart from China, no country buys more Russian oil today than India. Purchases have been going on almost continuously over the past two years. Prices fluctuated, with total sales exceeding $130 billion per year. Iraq and Saudi Arabia, traditionally India's largest suppliers, were left out. India is not a major oil producer, but it is the most populous country in the world and one of the fastest growing major economies.

Reuters: India's revenue from Russian oil is nullified by Trump's tariffs

India has saved billions of dollars by increasing imports of Russian oil at discounted prices, but the duties imposed by the United States will quickly undo these gains. Analysts estimate that India has saved at least $17 billion by increasing oil imports from Russia since the beginning of 2022. Trump's decision to impose additional duties of up to 50% on Indian imports could reduce exports by more than 40%, or almost $37 billion, from April 2024 to March 2025 alone.

In the coming weeks, India may reconsider its long-standing partnership with Russia and reconsider its increasingly complex ties with the United States. Two sources in the Indian government said that New Delhi is seeking to restore relations with Washington and is open to increasing purchases of American energy resources, but is not ready to completely stop importing Russian oil.

Associated Press: India is preparing for an export shock

India is preparing for a major blow to its foreign trade. Trump's tariffs threaten more than half of India's exports to its largest market and highlight the fragility of trade ties between the two countries. The Indian government estimates that the tariffs will affect exports worth $48.2 billion. Officials warn that the new duties could make shipments to the United States commercially unprofitable, leading to job cuts and slower economic growth.

India and the United States have held five rounds of negotiations on a bilateral trade agreement, but have yet to reach one. This is largely due to New Delhi's resistance to opening up sectors to cheaper American imports, citing concerns that it would jeopardize the jobs of millions of Indians who depend on them for their livelihoods. Modi promised not to succumb to pressure.

Delivery played: India has made a decision on Russian oil

Fuel purchases from the Russian Federation are an issue of energy security for 1.4 billion residents of the republic, the ambassador said.

The Economic Times: oil prices may rise to $200 per barrel

Russian crude oil now accounts for almost 40% of India's total oil purchases, which were practically not purchased until 2022. Analysts say that any immediate cessation of supplies would not only be a signal of capitulation under pressure, but also economically impractical. Indian purchases are mainly conducted by the Reliance Industries company of billionaire Mukesh Ambani, which operates the world's largest oil refining complex in Gujarat, Modi's home state.

India accused the United States of double standards, as they single it out as the main buyer of Russian oil, while they themselves continue to purchase Russian uranium hexafluoride, palladium and fertilizers. New Delhi says other countries that have increased purchases of Russian oil, such as China, have not been punished. In response, US Treasury Secretary Scott Bessent noted that China had increased purchases from 13% to only 16% of all oil imports.