GTRI Demands Removal of 25% Russian Oil Tariffs on India

The Global Trade Research Initiative (GTRI) has issued a strong appeal to the Donald Trump administration, urging Washington to immediately withdraw the 25% Russian oil tariffs imposed on India earlier this year. The additional duty—announced in August as a punitive measure for India’s purchases of Russian crude—was layered on top of an existing 25% “reciprocal tariff.” Trump justified the surcharge by claiming India’s transactions with Moscow were indirectly supporting Russia’s war effort in Ukraine.

But according to GTRI, that rationale no longer stands.

In its latest note, GTRI highlights new trade trends, updated data, and even President Trump’s own statements, all of which indicate that India has substantially reoriented its energy portfolio. Founder Ajay Srivastava argues that India has both reduced Russian crude imports and sharply increased its energy procurement from the United States, meaning the surcharge is now counterproductive and unsupported by evidence.

GTRI’s Case: India Has Done What America Asked

GTRI points out that Trump himself recently acknowledged India’s “very substantial” cutback in Russian oil purchases. He also indicated that the surcharge was introduced only for this specific purpose—going so far as to say, “we’re going to be bringing the tariffs down.”

Srivastava says the US should follow through on this commitment.

“India has acted decisively and transparently on American concerns. Continuing the extra 25% Russian oil tariffs now penalises a partner that has already adjusted course,” GTRI notes. The think tank adds that linking tariff removal to a broader trade negotiation is unnecessary and risks injecting tension into an already sensitive dialogue.

India’s Energy Shift: Data Tells the Story

Fresh trade data underscores how significantly India has repositioned itself:

• US crude oil exports to India rose 66.9% to $5.7 billion during April–September 2025.

• Total US petroleum and product exports to India climbed 36.3%, touching $7.5 billion.

• India’s petroleum product exports to the US dropped 15% to $2.3 billion, easing previous American concerns that India was refining Russian crude and re-exporting it to US buyers.

India has also committed firmly to American suppliers:

• Bharat Petroleum Corporation Ltd. (BPCL) will purchase 10 million barrels of US Midland crude between November and March.

• India has signed its first-ever structured agreement to import 2.2 million tonnes of US LPG in 2026—around 10% of its annual LPG consumption.

GTRI notes that few major economies have expanded US energy sourcing at this pace.

GTRI: Meanwhile, Russian Oil Imports Are Falling Fast

India’s intake of Russian crude took a sharp downturn in November. With Trump’s sanctions on Rosneft and Lukoil creating compliance challenges, Indian refiners have adopted a cautious approach.

Data from analytics provider Kpler shows:

• Russian crude shipments to India averaged 672,000 barrels per day (bpd) from Nov 1–17—down dramatically from 1.88 million bpd in October.

• Russia’s total global loadings fell 28% to 2.78 million bpd.

• Nearly 50% of Russian tankers are currently “destination-unspecified,” revealing difficulty in securing buyers and compliant shipping channels.

• China and Türkiye have also scaled down Russian purchases, with Chinese loadings falling 47% and Türkiye’s plunging 87%.

This broader reduction further challenges the argument for keeping India-specific penalties in place.

Why Washington Should Withdraw the Tariffs Now

According to GTRI, maintaining the surcharge despite India’s corrective actions:

• Undermines goodwill with a key strategic partner

• Punishes exporters unnecessarily, driving up costs without policy justification

• Risks slowing trade negotiations, already in a delicate phase

• Creates unequal treatment, especially when nations like China continue buying far larger volumes of Russian oil without facing similar penalties

Removing the 25% Russian oil tariffs, the organisation argues, would not only honour Trump’s public assurances but also reward India’s rapid pivot towards American crude and LPG, strengthen bilateral energy trade, and restore confidence in Washington’s consistency.

“This is a moment for the US to send a clear signal that its policies remain principled, responsive, and fair to partners who act in good faith,” GTRI concludes.