Trump Buys Russian Diesel After Punishing India

US President Donald Trump says his deal to buy Russian diesel is “for the world, not America”. Meanwhile, India still faces US tariffs of up to 100% for doing the same thing — buying Russian oil.

Updated: October 14, 2026, 9:30 IST

Quick Read

  • Trump announced on October 9 that Russia would supply 300,000 tons of diesel, followed by 500,000 tons in November and 1 million tons after that.
  • Twelve US senators from both parties wrote to Trump calling the deal “a gift to our adversary and a betrayal of our allies” and asked him to cancel it.
  • India still faces a US threat of tariffs up to 100% on its goods over Russian oil purchases — no relief was announced for New Delhi.

What Trump said

Reporters in Washington pressed Trump on Tuesday about the growing backlash. His answer, as reported by Rediff: “That’s a diesel deal. Not for us. That’s being released into the world.”

The world market was suffering from high prices, he said, after diesel refineries were knocked out. “They are not releasing it to us. They are releasing it to the entire world.”

The deal came out of Trump’s talks with Russian President Vladimir Putin last week. Trump publicly thanked Putin for agreeing to it and claimed fuel prices were already “dropping like a rock”.

Here’s the awkward part. Just three weeks earlier, the US Congress authorised Trump to impose sweeping sanctions on Russia and steep tariffs on Moscow’s trading partners — including China and India. The diesel deal now sits right next to that vote.

Also read: Crude Oil Price Near $107 as Trump Rejects Iran’s Hormuz Deal: How Global Shocks Hit India

The backlash at home

On Tuesday, a bipartisan group of 12 senators sent Trump a letter. The Democrats: Richard Blumenthal, Chris Coons, Dick Durbin, Jack Reed, Jeanne Shaheen and Sheldon Whitehouse. The Republicans: Alan Armstrong, Susan Collins, John Cornyn, Mitch McConnell, Lisa Murkowski and Thom Tillis.

Their words were sharp: “The deal you struck with President Vladimir Putin on October 9 will not achieve just ends, nor will it benefit Americans.” They called it “a gift to our adversary and a betrayal of our allies” and said it should be rescinded.

Their argument, per Mathrubhumi: the extra diesel will barely move fuel prices for American households, while handing Putin more money to fund the war in Ukraine.

Why did Trump do it then? Diesel prices in the US surged this month after supply disruptions caused by the Iran war, and America votes in congressional midterms next month. The deal is widely read as a move to cool pump prices before that vote.

What this means for India

This is the contradiction New Delhi is watching.

For over a year, Washington punished India over Russian oil. Indian goods were hit with extra import duties — an additional 25 percentage points on top of earlier tariffs, taking the total to 50%. The charge: India was buying “blood oil”, and Indian refineries were selling Russian-origin fuel abroad.

Now Washington is opening the door to Russian fuel itself. The US Treasury issued a temporary licence letting specified Russian diesel deals go through until April 7, 2027, per the Deccan Herald. Trump’s defence — it’s for the world, not America — doesn’t change what the fuel is. Russia still gets paid.

And India got no matching relief. The authority to impose tariffs of up to 100% on countries buying Russian oil and gas stays untouched, per the National Herald. The Deccan Herald put it in a headline: “India faces 100% US tariffs for buying Russia, Iran oil.”

For Indian exporters — textiles, gems, engineering goods — that threat hangs over every shipment to America.

There’s also a market effect. If Russian diesel flows into world markets in large volumes, global diesel prices could soften. That would be good news for Indian truckers and farmers who burn diesel every day. But it could squeeze the margins Indian refiners earn when they export fuel abroad. Whether any of this actually happens depends on how much diesel really ships — and that is still unknown.

The timing tells its own story. The US holds congressional midterms next month; India does not vote for years. Washington bought itself cheap fuel at home while keeping the whip hand over India’s Russian oil.

Also read: Rupee Near All-Time Low: Why It Keeps Falling and $83 Billion Can’t Stop Houthis: India’s Oil Bill Rises

What happens next

Watch October 18. A deadline under the Graham Act on US penalties for buyers of Russian energy falls this week — and US Secretary of State Marco Rubio lands in India on October 17 with energy cooperation on his agenda. The diesel deal and the India trip are one story: Washington wants cheaper fuel at home and a harder line on everyone else’s Russian oil.

What we don’t know yet: whether the 100% tariffs on India will actually be imposed, whether the promised Russian diesel will ship at the announced scale, and whether the senators’ pressure will force Trump to scrap the deal. India, for now, is stuck with the bill and none of the discount.

FAQ

How much Russian diesel is in Trump’s deal?

Per Trump’s October 9 announcement, Russia would supply more than 300,000 tons of diesel, followed by 500,000 tons in November and 1 million tons “immediately thereafter” — about 1.8 million tons in total, per the Deccan Herald.

Does the deal change the tariff threat on India?

No. Reports say the US Treasury’s diesel licence runs until April 7, 2027, but the separate authority to impose tariffs of up to 100% on countries buying Russian energy remains in place. India’s purchases still face the threat.

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