Nobel laureate Abhijit Banerjee on Trump tariffs: ‘India should consider whether cheap Russian oil beneficial'
Abhijit Banerjee, at the sidelines of an event at the BML Munjal University, highlighted that India needs to think 'hard' about the topic of importing Russian oil and then ask the US about whether or not they will take the tariffs down if the oil import stops.
"We need to think hard about whether Russian oil imports are worth it and then go back to the US to say that, you know, will they take it (tariff) off, if we stop importing Russian oil," Banerjee told the news agency.
According to the agency report, the steep US tariffs are expected to bring a $27 billion impact on non-exempt exports that India deals with the US, and that there have been talks of stopping or curbing oil imports from Russia.
"It is not crazy to think about it. At a 25 per cent tariff, some of our exports are already not competitive, so maybe 50 per cent (tariff) does not matter," said Banerjee, cited in the news report.
India is the largest importer of Russian crude oil as the nation purchased 1.6 million barrels per day in July 2025, according to the agency report.
The news report also highlights that India has not placed any orders for August and September, due to the discounts that encouraged Indian oil refiners to import oil from the Black Sea, which have decreased by about $2 per barrel.
India imported 88 million tonnes of crude oil from Russia in the financial year 2024-25 out of the total shipment of 245 million tonnes, as per the agency report. Oil refining companies buy supplies of crude in advance contracts of two months, hence the orders for August and September were arranged before Trump's 7 August 2025 additional tariff announcement.
US President Donald Trump imposed a 25% tariff rate on all imports from India in addition to the baseline import duties of 10% before the tariff deadline of 1 August 2025, scrapping an industry-expected trade deal between the two nations.
Trump attributed this tariff-imposition move, citing that India is a 'vast majority' buyer of military equipment and crude oil from Russia. He also claimed that India's purchase of these items has enabled Russia in the war against Ukraine.
'India's tariffs are far too high, among the highest in the world, and they have the most strenuous and obnoxious non-monetary trade barriers of any country,' said Donald Trump in his post on Truth Social.
After the initial tariff move against India, President Donald Trump signed an executive order imposing an additional 25% tariff rate on all imports from India on top of pre-existing rates.
Mint reported earlier that the initial 25% tariffs became effective from Thursday, 7 August 2025 (9:30 a.m. IST), and the additional rates will be implemented from 27 August 2025.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Mint
6 minutes ago
- Mint
China shares BIG update on direct flights resumption with India, says ‘For some time…'
China on Thursday confirmed that it has been in 'close communication' with India to resume direct flights between the two countries, signalling a possible end to a five-year suspension of air connectivity. China Foreign Ministry spokesperson Lin Jian, responding to questions about recent media reports, said both sides have been working 'for some time' to facilitate the 'early resumption' of flights. The announcement comes amid speculation that an official confirmation could coincide with the Shanghai Cooperation Organisation (SCO) summit in Tianjin from 31 August to 1 September. Until early 2020, state-owned carriers such as China Eastern Airlines and Air China operated daily routes to several Indian cities, including New Delhi. Services were halted following the outbreak of the COVID-19 pandemic and have remained suspended amid deteriorating bilateral relations after the military standoff in Eastern Ladakh later that year. Hopes of a breakthrough grew after Indian Consul General in Shanghai, Pratik Mathur, met with senior executives of China Eastern Airlines on Thursday. A post by the Indian Consulate on X said the meeting discussed 'growth opportunities' in civil aviation and hospitality. Travel industry stakeholders in Shanghai have reportedly expressed strong interest in restoring air links. Lin said the resumption of flights would 'facilitate cross-border travel, exchanges and cooperation' between the two nations, whose combined population exceeds 2.8 billion. There is also speculation that Chinese Foreign Minister Wang Yi could visit India on 18 August for Special Representatives-level talks on the boundary dispute with National Security Advisor Ajit Doval. Lin declined to confirm the visit, saying details would be released 'in due course.' The two officials last met in December 2024 in China, shortly after Prime Minister Narendra Modi and President Xi Jinping agreed in Kazan to revive suspended dialogue mechanisms. Lin described both countries as 'major developing nations and important members of the Global South,' adding that 'a cooperative pas de deux of the dragon and the elephant as partners helping each other succeed is the right choice for both sides.' He stressed the importance of increasing political trust, expanding cooperation, and working together at multilateral forums such as the SCO.
Hindustan Times
7 minutes ago
- Hindustan Times
Independence Day 2025 LIVE updates: President Murmu hails Operation Sindoor in address to nation
Independence Day 2025 LIVE Updates: Preparations for the celebration of the 79th Independence Day in the national capital are in full swing. The Delhi Police have issued a traffic advisory that will be in place from 4 am to 10 am. Traffic on several key routes will be restricted or diverted on Friday. ...Read More Several roads around Red Fort will be closed to general traffic tomorrow, inlcluding Netaji Subhash Marg from Delhi Gate to Chatta Rail, Lothian Road from GPO Delhi to Chatta Rail, and SP Mukherjee Marg from HC Sen Marg to Yamuna Bazar Chowk. Security has also been beefed up across the city to ensure that the Independence Day celebrations are conducted smoothly. Snipers will be deployed at high-rise buildings, heightened camera surveillance across the city and more than 11,000 security personnel and 3,000 traffic police for security in and around the Red Fort, reported PTI. President Droupadi Murmu addressed the nation on the eve Independence Day on Thursday and condemned the "cowardly and utterly inhuman" terror attack in Pahalgam that happened on April 22. She also lauded the armed forces for demonstrated "strategic clarity and technical capability" by destroying terrorist infrastructure across the border.
Hindustan Times
8 minutes ago
- Hindustan Times
Will take forward ties with US on ‘mutual respect and shared interests': India
NEW DELHI: India is committed to taking forward relations with the US on the basis of mutual respect and shared interests, the external affairs ministry said on Thursday against the backdrop of strains in bilateral ties over trade-related issues and President Donald Trump's tariff policies. Ministry of External Affairs spokesperson Randhir Jaiswal addresses a press conference in New Delhi (PTI) The India-US defence partnership remains an important pillar of bilateral relations, with several engagements and an important military exercise scheduled for August, external affairs ministry spokesperson Randhir Jaiswal said, seeking to dispel reports that the trade-related row had impacted defence and strategic ties. 'We remain focused on the substantive agenda that our two countries have committed to and we hope that the relationship will continue to move forward based on mutual respect and shared interests,' Jaiswal told a weekly media briefing while responding to questions on the future of India-US relations amid the uncertainty caused by the Trump administration's tariff policies. 'India and the United States share a comprehensive global strategic partnership anchored in shared interests, democratic values and robust people-to-people ties. This partnership has weathered several transitions and challenges,' Jaiswal said. After more than two decades of convergence on a range of strategic and economic issues, India-US relations have run into rough weather because of US President Donald Trump's moves to force New Delhi to agree to a trade deal that will lead to enhanced access to Indian markets and greater purchases of American products. Besides imposing a reciprocal tariff of 25% on India, Trump has slapped a 25% penalty on Indian goods over the continuing purchases of Russian oil. Jaiswal's remarks were in line with New Delhi's approach on focusing on the long-term relationship and areas of convergence, such as collaboration on defence and security that has been assiduously built up in the past two decades. The India-US defence partnership, 'underpinned by foundational defence agreements, is an important pillar of the bilateral partnership', Jaiswal said. 'This robust cooperation has strengthened across several domains,' he added. Pointing to the continuing engagements with the US in the defence sphere, Jaiswal said a US defence policy team is expected to visit New Delhi in mid-August, while the 21st edition of the joint military exercise Yudh Abhyas is scheduled to be conducted in Alaska later this month. Both sides are also engaged in convening an inter-sessional meeting of senior officials under the 2+2 format – which involves the foreign and defence ministries of India and US – towards the end of August, he said. 'As far as the question of defence acquisition is concerned, the procurement processes continue as per established procedures,' Jaiswal said, brushing aside reports that India has paused purchases of military hardware from the US. Though Russia continues to account for nearly 60% of the inventory of India's armed forces, the US has become a key supplier of sophisticated weapon systems over the past two decades. Since 2008, India has contracted for US defence equipment worth at least $24 billion, including transport and maritime surveillance aircraft, attack helicopters, anti-ship missiles and howitzers. The US designated India as a 'major defence partner' in 2016, giving the country licence-free access to a range of military and dual-use technologies. The US has also concluded three so-called foundational agreements with India – the Logistics Exchange Memorandum of Agreement (LEMOA), Communications, Compatibility and Security Agreement (COMCASA) and the Industrial Security Agreement (ISA). Jaiswal responded to a separate question on criticism of India in the US state department's annual human rights report by saying that such reports are a 'mix of imputations, misrepresentations and one-sided projections that demonstrate a poor understanding of India's democratic framework, pluralistic society and robust institutional mechanisms for protecting human rights'. He added, 'We do not attach any credence to such biased assessments. We remain focused on advancing human rights for our people through inclusive governance and development.'
