Which Countries are Biggest Buyers of Russian Oil? You can Never Guess the Third Name

President Donald Trump of the United States has declared that, as of August 27, products imported from India will be subject to an additional 25% duty. This is a reaction to India's continued purchase of oil from Russia and comes in addition to the current 25% tax. The action has spurred international discussion on trade practices, particularly among nations that continue to rely heavily on Russian energy imports.

Largest Importers of Russian Oil

The European Union (EU) used to be the largest purchaser of Russian oil. However, Asian nations like China, India, and Turkey took over and are currently the top buyers of Russian energy after the EU imposed sanctions on Russia. Russia's biggest oil market now is Asia.

Due to sanctions, most European nations have cut back on their purchases of Russian oil; however, some, like Hungary, continue to purchase tiny amounts through pipelines.

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Impact of US Sanction on Russia

Russia still makes a lot of money from its oil exports despite European and American sanctions. The Kyiv School of Economics estimates that Russia's June oil sales brought in about USD 12.6 billion. It is anticipated that oil exports will generate up to USD 153 billion for the whole year 2025.

How will Indian Business fare with this New Tariff?

Despite the 25% tariff that President Trump has placed on Indian exports, India still has a stronger position than China. Vietnam imports are subject to a 20 percent tax under Trump's new trade policy, while Chinese imports are subject to a far higher 30 percent duty. This implies that although Vietnamese and Indian goods would still compete in the US market, India will still have a competitive advantage over China.

Fitch Ratings has revised its "Effective Tariff Rate (ETR) Monitor," a tool that examines the impact of tariffs on trade.

New Tariff Rates in USA

As per the latest developments, the new tariff rates can be summarised in the following points:

• In the United States, the average effective tariff rate increased from 15% to 17% in the previous year.

• China's ETR has increased significantly from its previous rate of 10.7 percent to 41.4%, making it the highest among all of the main trading partners of the United States.

• The fact that India's ETR is slightly over 21% indicates that it is still in a better position than China.

One way to gauge the true effect of tariffs on a nation's trade and economic policies is to use the Effective Tariff Rate (ETR).

China may have to contend with much more difficult tariff disputes in the future. Although Trump's "America First" strategy is also undermining long-standing U.S. alliances, it may present some new strategic chances for countries like China and India.

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