US Warns All Russian Oil Buyers: Sanctions Could Expand

The White House has imposed 25% tariffs on Indian imports for continuing to buy Russian oil and warns similar penalties may follow for other nations defying President Trump’s sanctions ultimatum.

The United States reserves the right to expand customs tariffs, initially imposed on Indian goods, to products from all nations that continue purchasing raw materials from Russia despite warnings from President Donald Trump. This is according to a statement released by the White House.

The US administration may introduce increased duties on any country ignoring the call to halt imports of Russian resources in order to pressure Moscow into ending military operations in Ukraine. The move aims to reduce Russia’s budget revenues from energy exports and push it toward signing a peace deal, the statement clarified.

India has already been hit with a 25% import duty on goods entering the US market. Similar measures could soon target other major buyers of Russian raw materials, including those importing oil “directly or indirectly.”

Trump accuses India of profiting from Russian oil trade

On August 4, President Trump threatened to “substantially” raise tariffs on New Delhi for re-exporting Russian oil. “India not only buys enormous volumes of Russian oil, but also resells a large portion on the open market for huge profits,” he stated.

According to Bloomberg, India has continued purchasing Russian crude despite US warnings of tariffs.

India sends security adviser to Moscow

The Indian Ministry of External Affairs responded that the country is forced to buy oil from Russia and criticized what it called “unjustified and unfair” accusations. “The very countries criticizing us continue their own trade with Russia. Unlike ours, their transactions are not driven by vital national necessity,” the ministry said.

New Delhi explained that traditional suppliers diverted oil to Europe after the outbreak of war in Ukraine, and that the US had actually encouraged Indian purchases to stabilize global energy markets.

“The very countries criticizing us continue their own trade with Russia. Unlike ours, their transactions are not driven by vital national necessity.”

In response to Trump’s threats, The Times of India reported that India is dispatching a “high-level” delegation to Moscow, including National Security Adviser Ajit Doval. Although the visit was planned in advance, its timing has taken on new significance.

Moscow calls US pressure tactics illegitimate

The Kremlin has rejected Washington’s pressure campaign, with Presidential Press Secretary Dmitry Peskov stating that attempts to force countries to sever trade ties with Russia are “illegitimate.”

Moscow Exchange and oil futures decline

At 16:59 Moscow time, the Moscow Exchange Index (IMOEX) dropped 0.57% to 2,770.56 points. By 17:36, the index had fallen further by 0.95% to 2,760.45.

The market volatility followed Trump’s signing of the executive order imposing the 25% tariff on Indian imports. Earlier, he had threatened duties as high as 100% for Russian oil buyers.

The tariffs are set to take effect 21 days after the order’s signing.

October Brent crude futures slowed their gains following the news, rising only 1.09% to $68.38 per barrel, compared to a 1.5% increase earlier in the day.