India's Energy Security vs. US Tariff Pressure: The Strategic Dilemma

A GTRI report emphasizes India's need to prioritize its energy security by continuing Russian crude imports and resisting US tariff pressures, which pose a risk amid potential 100% tariffs on main buyers of Russian crude. India should avoid conceding trade terms to the US for short-term tariff relief.

A recent report by the Global Trade Research Initiative (GTRI) urges India to protect its energy security by persisting with Russian crude oil purchases as long as they remain cost-effective, despite potential US tariffs. These tariffs could reach up to 100% for countries like India and China, major buyers of Russian oil.

According to the GTRI, the US legislation known as the Lindsey O. Graham Sanctioning Russia and Iran Act of 2026, which has been approved by Congress, empowers the US President to levy additional tariffs against the top buyers of Russian energy resources. This development raises concerns for India, which relies on imports for over 88% of its oil needs.

The report also notes India's shifting oil import dynamics, highlighting the increased share of Russian imports due to reduced supplies from traditional Gulf partners amid regional conflicts. GTRI concludes that India must not sacrifice its long-term energy interests to evade immediate tariff threats from the US.