Russian Diesel for America, tariff relief for India: Trump's energy policy contradiction

WASHINGTON: The war in West Asia has upset US President Donald Trump's calculations, with crude oil prices surging amid the blockade of the Strait of Hormuz. In a dramatic reversal, Trump, who had even been prepared to import diesel from Russia, changed his stance overnight. The decision to impose a 100% import tariff on countries purchasing Russian fuel has been put on hold for the time being, offering relief to India.

The administration has justified the move in the name of the “national interest”. However, the reversal comes against the backdrop of the November 3 US midterm elections. Discontent is reportedly growing among Americans over what critics see as Trump's repeated hard-line decisions creating uncertainty in the country.

The tariff measure Trump signed in September was scheduled to take effect on Sunday. It was intended to impose tariffs on five countries that had increased their imports of Russian oil and gas. China and India are among the largest importers.

Trump, however, retains the authority to revive the tariff plan. He can decide which countries will be targeted, the rates that will apply and which countries will be exempted.

Double standards over Russian fuel

India and other countries had accused Trump of applying double standards, arguing that while he sought to discourage them from buying Russian energy, the United States itself was prepared to import large quantities of diesel from Russia.

The US move to ease restrictions on Russian diesel exports until April 2027 has also drawn attention to this apparent contradiction. Washington's efforts to contain rising domestic diesel prices have added another dimension to the debate over its approach to Russian energy supplies.

What made Trump reconsider?

• Strained partnerships: Alienating countries such as India could jeopardise trade and defence agreements.
• India's position: New Delhi had made it clear that it would not accept tariff threats as a means of exerting pressure.
• Rising oil prices: Failure to contain fuel prices could carry political costs ahead of the US midterm elections.

Trump blames Ukraine

Earlier: Trump had maintained that tariffs would put pressure on Russia's economy and defence sector, compelling Moscow to work towards ending the war in Ukraine.

Now: Trump has blamed Ukrainian President Volodymyr Zelenskyy for prolonging the war and called for a change in leadership. He has also argued that Ukrainian attacks on Russian refineries have contributed to the rise in global fuel prices.