India’s government is scrambling to contain the economic fallout from President Trump’s threatened tariff action.

But while the Indian government may not be deterred by Trump's threats, sources told Reuters this week that Indian state refiners stopped buying Russian oil after July discounts narrowed to their lowest since 2022 - when sanctions were first imposed on Moscow - due to lower Russian exports and steady demand.

Donald Trump has said he plans to “substantially” raise tariffs on imports from India because of its purchases of Russian oil, in a new escalation of tensions between Washington and New Delhi. The US president’s warning comes after India failed to reach an agreement with the White House to secure lower levies on its exports to America last week,