A recent US Supreme Court ruling striking down President Trump’s “Liberation Day” tariff has reduced leverage on India over its Russian crude purchases, offering trade relief amid ongoing negotiations.
Tariff Background
Trump imposed 50% tariffs on Indian goods last year, including a 25% punitive add-on for India’s 1.5 million barrels daily of discounted Russian oil—over a third of its imports. This pressured New Delhi, the world’s third-largest oil consumer, to shift suppliers despite energy security needs.
Supreme Court Impact
The February 2026 verdict invalidated broad tariff enforcement, dropping effective rates below the recent 18% interim deal (from 50%). Analysts note this weakens US demands for India to halt Russian imports, as refiners like Reliance and state firms continue buying despite sanctions on Rosneft and Lukoil.
Trade Deal Progress
An interim agreement saw Trump claim India pledged to stop Russian oil for tariff cuts, though New Delhi stayed silent. Talks resume with clarity on tariffs; India eyes US/Venezuelan crude but prioritizes affordable energy for growth.
Market Reactions
Indian stocks dipped on initial threats but stabilized post-ruling. Experts warn ambiguity persists—full cessation unlikely without alternatives matching Russia’s $16/barrel discou
