NEW DELHI: Fresh US threats to sanction countries buying Russian crude may cast a shadow over India’s trade negotiations with Washington, underscoring the geopolitical constraints facing New Delhi even as it celebrated the operationalisation of its free trade agreement with the UK on Wednesday.
The measure, negotiated by a bipartisan group of senators, would grant Trump authority to hit the countries with tariff rates up to 100 per cent, even as implementation and enactment of the proposal could take months.
India had borne the brunt of tariffs when Trump imposed a 50 per cent duty in August 2025 on a large number of Indian exports for buying Russian oil, allegedly funding the Kremlin’s war in Ukraine. The issue was resolved in February, paving the way for a preliminary agreement on trade.
India, however, is yet to sign the preliminary agreement after the US Supreme Court curtailed the Trump administration’s power to impose tariffs at will. While New Delhi is yet to respond to the US tariff proposal, unveiled on July 14 by a group of 26 US senators, any curtailment in Russian crude supply could complicate India’s energy security.
“There are currently few alternative suppliers capable of replacing Russian crude at the same scale, reliability, and economics. Russian crude remains the most practical and competitive source of supply for Indian refiners,” said Sumit Ritolia, an expert at marine intelligence firm Kpler.
Ajay Srivastava, founder of think tank GTRI, argued there is little room for concern. “The original bill sat in the Senate for over 15 months, suggesting limited congressional support for such sweeping tariff powers. The revised bill may meet the same fate,” he said.
The renewed uncertainty on the US trade deal nearly coincided with the operationalisation of the UK Comprehensive Economic and Trade Agreement, which Prime Minister Narendra Modi described as ‘a significant moment in the India-UK partnership’.
Commerce secretary Rajesh Agrawal said goods worth $140 million were exported to the UK on day one. Nearly 99 per cent of Indian goods and 90 per cent of UK items will face zero or lower tariffs.
Arnab Basu, a Calcutta-born scientist and entrepreneur now settled in the UK, said: “The agreement creates opportunities for businesses and professionals in both India and the UK.”
Agencies