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OngoingInternational Relations

US Tariffs on Russian Oil and Impact on India-Iran Relations Jan 2026

Trump's threat of tariffs on nations buying Russian oil and its impact on India-Iran relations.

9 Jan 2026 - 19 Jan 20266 updatesUpdated 19 Jan 2026
TariffsRussian OilIndia-Iran RelationsUS Foreign Policy

Story Summary

In January 2026, the shadow of potential US tariffs under a possible Trump administration loomed large over India's foreign policy, especially concerning Russia and Iran. Trump's approval of legislation allowing tariffs up to 500% on Russian oil purchases and 25% on trade with Iran created significant concerns for India. While India prepared to host the Iranian President for the BRICS summit, it also faced escalating trade tensions between the US and its European allies, with threats of tariffs reaching 25% by June 2026. Analyses suggested that China had adapted to previous US tariffs, raising questions about the effectiveness of such measures. These developments highlighted the complex geopolitical landscape India navigated, balancing its strategic interests with potential economic repercussions from US trade policies.

Key Facts

1Trump reportedly approved legislation allowing 500% tariffs on Russian oil buyers.
2Senator Lindsey Graham co-sponsored the bill targeting Russian oil purchases (84 Senate co-sponsors).
3Senator Bernie Moreno proposed a 25% tax on American imports from India.
4Trump threatened 25% tariffs on countries trading with Iran.
5Iran accounted for only 0.26% of India's total exports in FY26 (up to November 2025).
6Basmati rice constitutes 61% of India's exports to Iran.
7India is hosting the Iranian President for the upcoming BRICS summit.

Timeline (6 events, 3 days)

19 Jan 2026(Latest)2 events

The Trump administration threatened tariffs on European allies and analysis suggested China had adapted to previous US tariffs, adding complexity to the global trade environment.

Source Articles
Tariffs' Impact on China: Analysis of Trade War EffectsRead article
Trump's Tariff Threats: Weaponizing Trade Against European AlliesRead article
14 Jan 20262 events

Trump's threat of 25% tariffs on countries trading with Iran raised concerns about renewed strain on India-Iran ties, although some analysts predicted limited impact on India's trade with Iran due to already reduced volumes.

Source Articles
Trump's Tariff Threat: India-Iran Ties Face Renewed StrainRead article
Trump's Iran Tariff Threat: Limited Impact on India's TradeRead article
9 Jan 20262 events

President Trump reportedly approved legislation allowing for tariffs up to 500% on countries buying Russian oil, while the Congress party in India raised concerns about growing turbulence in India-U.S. relations due to potential sanctions and tariffs.

Source Articles
Trump 'Greenlights' 500% Tariffs on Nations Buying Russian OilRead article
Congress Highlights Growing Turbulence in India-U.S. RelationsRead article
Story continues...

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