The President of the United States, Donald Trump, has signed an order imposing an additional 25% tariff on goods from India, in response to the country’s continued imports of Russian energy, a measure announced on Wednesday that could reshape global tanker trades. The decision came hours after talks between the United States and Russia on the war in Ukraine ended without progress. The new tariffs will come into effect in 21 days and are in addition to the already planned country-specific 25% tariffs.
Braemar analysts suggested that yesterday’s White House announcement would make Indian refiners more risk-averse.
The Nayara refinery, partly owned by Rosneft and a key importer of Russian crude, has already reduced run rates in response to European sanctions imposed on July 18.
Indian refiners may see buying more crude from the United States as a tool to negotiate relief from US tariffs, Braemar suggested.
“If India completely replaces Russian crude barrels, we can expect to see the employment of younger ships on the rise,” Braemar predicted in a market update sent to clients. Over 58% of Russian flows to India were over 18 years old in H1 this year. In 2021, before the Russian invasion, only 10% of all Indian imports involved tankers over 18 years old.
Over the past year, Russian crude has constituted about one third of India’s total crude imports. This is up from 2% before Russia invaded Ukraine.
Analysis from rival broker Gibson pointed out that India, and other buyers of Russian crude, have more to lose by siding with Russia over the United States.
“The value of goods exported from China, India, Brazil and Turkey to the United States far exceeds the value exported to Russia, meaning that if Trump really imposes secondary tariffs, these countries could be forced to at least partially appease the United States,” Gibson observed in a recent report, adding that it did not see China as likely to bow to US pressure.
“Buyers and sellers are likely to find ways to circumvent the new rules and may increasingly obscure their trading practices to ensure cargoes find a path to market,” Gibson suggested.
BRS has statistics on the strong growth in the so-called gray tanker fleet this year, and the broker suggests that the gray fleet has been growing by around 30 tankers per month in 2025, even as Western authorities unleash the most aggressive sanctions seen in many years.
The India tariff comes as Trump’s new tariffs on over 90 countries worldwide have come into effect.
“It’s midnight! Billions of dollars in tariffs are now flowing to the United States of America!” Trump said on social media minutes before the deadline in Washington.
Starting with the Informa group in 2000 in Hong Kong, Sam Chambers became editor of Maritime Asia magazine, as well as East Asia editor for the world’s oldest newspaper, Lloyd’s List.
In 2005 he pursued an independent career and wrote for a variety of titles including taking on the role of Asia editor for Seatrade magazine and China correspondent for Supply Chain Asia. His work has also appeared in The Economist, The New York Times, The Sunday Times and the International Herald Tribune.
August 7, 2025
August 7, 2025
August 7, 2025
August 7, 2025
August 7, 2025
