Nations importing from Russia are now under scrutiny by the United States. As President Donald Trump strengthens his trade agenda under the banner of “America First,” countries that are still importing oil and goods from Russia, such as India, China, and several other nations, are facing pressure. Trump is repeatedly threatening higher tariffs on nations that uphold their commercial ties with Moscow.
India is one of the largest importers of Russian crude oil since the US imposed sanctions on importing countries due to the Russia-Ukraine War.
Moreover, Trump’s current threat of 25% tariffs on Indian imports has raised questions about whether trade penalties are gradually being used to punish Russia’s geopolitical alignments.
US Treasury Secretary Scott Bessent recently stated that countries which are still purchasing oil from Russia could face other tariffs of up to 500%, under legislation passed by Congress. However, this was not officially declared at any point.
India and Others Walk a Fine Line Between Economics and Diplomacy
India is defending its Russian oil imports as an important factor for the betterment of its economic and financial stability. India has frequently depicted its neutrality on the Russia-Ukraine conflict and has declined sanctions. Other major Russian oil buyers have also made similar arguments.
However, Trump’s trade team has clearly signaled that continued cooperation with Russia could have direct consequences on their trade alignments with the US. There are various non-tariff barriers and digital service taxes that are streamlined to be imposed on countries that maintain ties with Moscow.
‘America First’ or Global Trade Realignment?
Several analysts have predicted that these moves are part of Trump’s broader policy of ‘America First,’ where he emphasizes American manufacturing and investments. It, therefore, reduces the dependency of the US on other nations to even meet its domestic demand.
Critics claim that this realignment of global supply chains, along with manufacturing, will alter the current trade partnerships and may polarize global trade in favor of the US.
Also, countries that are still importing from Russia may come under pressure to choose between economic benefits and interests to avoid US penalties.
Also Read: Global Trade On Edge: China-US Talks End Without Tariff Deal Ahead Of August Deadline
Ankur Mishra is a journalist who covers an extensive range of news, from business, stock markets, IPOs to geopolitics, world affairs, international crises, and general news. With over a decade of experience in the business domain, Ankur has been associated with some of the reputed media brands. Through a sharp eye on global marketplaces along with deep insights and analysis of business strategies, Ankur brings simplicity to the complex economic matrix to decode market trends and empower people.
He is committed to entrenched data, facts, research, solutions, and a dedication to value-based journalism. He has covered trade tariff wars, international alliances, corporate policies, government initiatives, regulatory developments, along with micro- and macroeconomic shifts impacting global fiscal dynamics.
