U.S. Threatens 100 Percent Tariffs on Russian Oil Buyers

The United States government has threatened to impose 100 percent tariffs on countries that continue to purchase Russian oil. This policy move occurs amid global energy instability driven by conflicts in Iran and disruptions in the Strait of Hormuz.

India is particularly vulnerable to these measures, as Russian oil accounted for roughly 50 percent of its crude imports in July. Sachin Gupta of CareEdge Ratings warned that if India and China fail to reduce their reliance on Russian oil and the tariffs are implemented, global oil prices could exceed USD 100 per barrel, potentially reaching USD 110 to 120.

Such a price spike could double India's current account deficit compared to the previous year. Gupta noted that the resulting economic pressure could drive domestic inflation if the Indian government is forced to pass higher fuel costs on to consumers.