Washington, D.C. — Trump Threatens Higher Tariffs on India Over Russian Oil Purchases as U.S. and Europe Continue Limited Trade with Moscow. U.S. President Donald Trump has warned that India could face an additional 25% tariff and possibly higher trade penalties, alongside other countries that continue buying Russian oil. The move is part of Washington’s effort to pressure Moscow into ending the war in Ukraine.
However, the United States and European Union — despite imposing sweeping sanctions on Russia — still engage in limited trade with Moscow, though the volumes are only a fraction of pre-war levels.
India Pushes Back Against “Unfair” Tariff Threats
India has dismissed the proposed tariff hike as “unjustified,” pointing out that other nations, including Western powers, also maintain commercial ties with Russia.
Trade between Russia and the United States has plummeted by nearly 90% since Russia’s full-scale invasion of Ukraine in 2022. Yet, U.S. import data from the Bureau of Economic Analysis (BEA) and Census Bureau shows that in 2024, America still bought $3 billion worth of goods from Russia.
By comparison, the European Union imported $41.9 billion (€36 billion) worth of Russian goods in 2024, according to Eurostat.
EU Cuts Dependency but Maintains Limited Trade
Kimberly Donovan, Director of the Economic Statecraft Initiative at the Atlantic Council, acknowledged that while the EU still imports from Russia, it has made “huge strides” in reducing reliance. Data shows EU imports from Russia fell by 86% between Q1 2022 and Q1 2025.
“They’re making significant progress to further cut how much they get from Russia,” Donovan explained. “The U.S. and EU could expand trade with alternative partners like Canada, but ongoing tariff disputes are limiting strategic flexibility.”
Potential for More U.S. Tariffs on India
Trump is scheduled to meet Russian President Vladimir Putin in Alaska this Friday. Ahead of the talks, U.S. Treasury Secretary Scott Bessent hinted at more punitive measures if negotiations fail.
“We’ve already placed secondary tariffs on India for buying Russian oil. If things don’t go well, sanctions or tariffs could rise further,” Bessent told Bloomberg.
Where U.S.-Russia Trade Still Exists
1. Fertilizers
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In the first half of 2025, the U.S. imported $927 million worth of fertilizers from Russia, with 2024 imports surpassing $1 billion.
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Key imports include urea, urea ammonium nitrate (UAN), and potassium chloride muriate of potash.
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Allan Pickett of S&P Global Commodity Insights noted that Russia remains a top global supplier, and unless sanctions are extended to fertilizers (as with Belarusian potash), this trade is likely to continue.
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Shifting to alternative sources would increase U.S. reliance on Canada — which already faces a 35% tariff on certain goods under the Trump administration’s policy.
2. Palladium
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Used in electronics and catalytic converters, palladium imports from Russia have decreased but remain significant.
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The U.S. imported $878 million worth in 2024 and $594 million in the first half of 2025.
3. Uranium and Plutonium
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Nuclear-related imports totaled $755 million from Russia in the first six months of 2025, compared with $624 million in 2024.
Geopolitical and Economic Stakes
While the U.S. and EU aim to isolate Russia economically, their continued imports of critical materials highlight the complexities of enforcing total trade cutoffs. For India, the growing pressure from Washington could mean tougher economic consequences if it maintains oil purchases from Moscow.
With U.S.-Russia trade now heavily concentrated in fertilizers, precious metals, and nuclear materials, any escalation in tariffs or sanctions could disrupt global supply chains — impacting agriculture, automotive manufacturing, and the energy sector worldwide.
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