News Brief

Russian Oil 'Not Bedrock' Of India's Economy: US Trade Chief Softens Stance Amid 50 Per Cent Tariff Row

Swarajya News Staff

Oct 09, 2025, 09:02 AM | Updated 09:01 AM IST


An oil tanker (Representative image via Wikimedia).
An oil tanker (Representative image via Wikimedia).

US Trade Representative Jamieson Greer has acknowledged that Russian oil purchases are not a bedrock of India's economy, striking a notably different tone from other Trump administration officials as Washington maintains its punishing 50 per cent tariff on Indian exports.

Speaking at the Economic Club of New York, Greer emphasised India's sovereignty in making energy decisions whilst suggesting the country is already beginning to diversify its energy sources away from Russian crude.

The trade representative's remarks come as India and the United States continue negotiations to address trade barriers after President Donald Trump's imposition of a 50 per cent tariff on Indian goods in August.

The tariff comprises a 25 per cent reciprocal levy and an additional 25 per cent penalty specifically for India's purchases of Russian oil, which Trump claims indirectly funds Moscow's war in Ukraine.

Greer noted that India has a $40 billion trade surplus with the US and characterised New Delhi's approach as "pragmatic," stating he could already see India starting to diversify its energy imports.

Greer's conciliatory tone contrasts sharply with the inflammatory rhetoric from White House trade adviser Peter Navarro, who has repeatedly attacked India over its trade policies and energy purchases.

Navarro dubbed India the "Maharaja of tariffs" and warned that continuing ties with Russia and China "won't end well" for New Delhi.

He has accused India of funding Russia's war machine through oil purchases and even blamed Prime Minister Modi, rather than Putin, for the Ukraine conflict.

After his claims were fact-checked by X's community notes feature, Navarro lashed out at what he called India's "keyboard minions" attempting foreign interference.

The US trade representative stressed that Washington is not trying to dictate to sovereign nations about their relationships, acknowledging that India's increased purchases of discounted Russian oil over the past two to three years were driven by the need to ensure energy security for its 1. 4 billion citizens.

Greer also pointed out that the Trump administration has engaged with European allies and China about their Russian oil purchases, with some European nations still importing Russian energy despite supporting Ukraine.

The ultimate goal, he emphasised, is ending the Russia-Ukraine conflict, after which discussions about Russian oil could resume under different circumstances.

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