NEW DELHI — India has cautioned the United States that proposed tariffs aimed at countries purchasing Russian oil could put additional strain on economic relations between the two nations as New Delhi works to safeguard its energy supplies.
The warning followed the U.S. House of Representatives’ passage of a wide-ranging sanctions and tariff bill designed to increase pressure on Russia over its invasion of Ukraine. The legislation would give President Donald Trump the authority to impose tariffs of up to 100% on China, India and other countries in an effort to reduce their dependence on Russian energy.
India’s foreign ministry said Thursday that New Delhi had discussed concerns over the possible effects of the measures with U.S. officials in recent months. The ministry said the legislation could have consequences for both bilateral relations and international energy markets.
The Indian government said it remained focused on preserving energy security and would continue sourcing supplies from different sellers according to market conditions.
India is the world’s third-largest oil importer and ranks among the largest purchasers of Russian crude. The government has repeatedly defended its purchases of Russian oil, saying the country’s large population and economy require dependable and affordable energy supplies.
Indian refiners have already secured September and October supplies that include Russian crude, according to people familiar with the transactions.
Two refining sources said they want the Indian government to continue discussions with U.S. authorities because new tariffs could significantly raise oil costs. They said the effect could be especially substantial because global supplies have already been constrained by the conflict in the Middle East.
Rather than facing an immediate 100% tariff, Indian refiners are seeking possible flexibility in the proposed measures. Sources said they would favor arrangements allowing existing transactions to proceed while setting a quota for future purchases of Russian oil.
The tariff dispute adds another challenge to trade negotiations that have been continuing between India and the United States.
Indian analysts said the prospect of additional U.S. tariffs could complicate efforts to reach a trade agreement. The two countries have been negotiating for months without reaching consensus, while New Delhi has been seeking improved terms.
Indian Trade Minister Piyush Goyal is expected to visit the United States later this month for a G20 trade ministers’ meeting. He is also expected to hold bilateral discussions on the trade negotiations with U.S. Trade Representative Jamieson Greer.
The dispute comes as global energy markets remain vulnerable to supply disruptions. A decline in India’s purchases of Russian crude could change trading patterns and potentially increase competition for oil from other producers.
For Indian refiners, the immediate challenge is determining how to replace Russian barrels without significantly increasing costs while continuing to maintain fuel supplies amid disruptions affecting other parts of the global market.
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