Trump's new tariff threat risks cutting off Asia’s Russian oil lifeline as Gulf supply falls
The threat of US tariffs on major buyers of Russian oil could squeeze an increasingly important source of crude for India and China as Gulf supply disruption tightens the global market. The US House of Representatives has granted President Donald Trump authority to impose tariffs on any of the five largest buyers of Russian crude or gas that “knowingly” book a new cargo, with rates of up to 100…
President Donald Trump's new tariffs on Russian oil could disrupt Asia's supply chain, particularly for India and China, as Gulf supply dwindles. The US House granted Trump authority to impose tariffs on major buyers of Russian crude or gas, with rates up to 100%. The legislation could take effect 30 days after enactment. If Russia's crude exports decline further, buyers may accelerate purchases from Russia to avoid future risks, potentially increasing Russia's share of Asian imports.
Russian crude accounted for 50% of India's imports by July, up from nearly 18% in February. China's Russian crude imports fell by 15% since February, but now make up 22% of its total imports. The broader oil market is already tight, with Brent prices above $100 for seven consecutive days. The US administration is cautious about imposing tariffs as it could tighten supplies, raise oil prices, and pressure the global economy.
China may escape immediate tariffs, but the threat could prompt refiners to seek exemptions or demand wider Russian discounts.
Written by urgent.news from The National Business's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
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