Trump Tariff Threat Effect? Indian Oil Buys 7 Million Barrels from US, Canada, Middle East

Days after former U.S. President Donald Trump threatened to levy additional tariffs on India for purchasing Russian energy, Indian Oil Corporation (IOC) — the country’s largest refiner — bought seven million barrels of crude oil for September delivery, sourced via a tender, from the U.S., Canada, and the Middle East.

Trump had earlier announced a 25% tariff on all Indian imports and threatened additional taxes in response to India’s continued purchases of Russian energy.

According to a Reuters report, IOC and other Indian refiners have temporarily halted Russian oil imports due to reduced price discounts and increased scrutiny from the United States and the European Union over energy trade with Moscow.

India had significantly increased its Russian oil imports — from negligible levels in early 2022 to regularly importing 1.7–2.1 million barrels per day (bpd) by mid-2025 — making Russia its single largest crude supplier, on par with or exceeding volumes from the Middle East. This surge followed the onset of the Ukraine conflict and intensified through FY25.

In addition to Trump’s warning, the purchases came amid fresh EU sanctions on Russian energy trade.

As per the Reuters report, Indian state refiners — IOC, Hindustan Petroleum Corporation, Bharat Petroleum Corporation, and Mangalore Refinery and Petrochemicals Limited — had not sought Russian crude in the past week or so.

In the tender that closed on Friday, IOC reportedly purchased 4.5 million barrels of U.S. crude, 500,000 barrels of Canada’s Western Canadian Select (WCS), and 2 million barrels of Das oil produced in Abu Dhabi.

Described as “higher-than-normal,” these purchases will partly replace Russian barrels.

India, the third-largest oil importer after China and the U.S., remains the largest buyer of seaborne Russian crude.

The report also stated that:

• Phillips 66 and Equinor will each deliver 1 million barrels of WTI Midland crude.
• Mercuria, a leading independent energy and commodities group, will supply 2 million barrels of WTI Midland.
• Vitol, a global energy trading firm, will deliver 1 million barrels of WTI Midland and WCS.
• Trafigura, one of the world’s largest commodity suppliers, will ship 2 million barrels of Das crude.

However, the purchase prices have not been disclosed.