‘Don’t end up punishing India’: JPMorgan CEO urges US caution on Russian oil tariffs

JPMorgan Chase chairman and CEO Jamie Dimon has urged the United States not to “end up punishing India” over its purchases of Russian crude, arguing that Washington should consider the requirements of Indian refiners and the consequences for global oil markets before imposing fresh tariffs.

Speaking on the sidelines of the JPMorgan India Investor Conference in Mumbai, Dimon said the US should engage with India and understand how Russian crude was being used by its refineries before deciding on further measures. His remarks came after US President Donald Trump signed legislation giving his administration the authority to impose tariffs of up to 100 per cent on major buyers of Russian oil and gas, including India and China.

‘Understand all those issues’

Dimon said he hoped Washington would sit down with New Delhi and examine the wider implications of measures targeting Russian crude purchases.

“I think hopefully America will sit down and understand all those issues and, you know, not end up punishing India and the world oil markets while doing what we need to do to combat Russia,” he said.

Dimon said he was not convinced that tariffs on oil were the appropriate instrument, even as he argued that the US could do more to support Ukraine. He pointed out that refiners purchase particular grades of crude depending on their requirements and replacing Russian supplies would mean sourcing barrels elsewhere in the global market.

His comments highlighted the dilemma facing Washington as it seeks to squeeze Moscow’s energy revenues without triggering a wider disruption in crude supplies. Removing or significantly reducing Russian barrels from international markets could tighten supplies and put upward pressure on prices.

New tariff powers

Trump last week signed the Lindsey O. Graham Sanctioning Russia and Iran Act of 2026, which gives the US administration the power to impose tariffs of up to 100 per cent on major countries continuing to purchase Russian oil and gas.

The legislation does not automatically impose a 100 per cent tariff on Indian goods. Instead, it gives the Trump administration the authority to impose secondary tariffs if the relevant provisions are invoked.

India, one of the world’s largest crude importers, has become a major destination for Russian oil since the Ukraine war reshaped global energy trade. New Delhi has consistently maintained that its energy purchases are driven by national requirements, affordability and market conditions.

Russian imports decline

India’s Russian crude imports have, meanwhile, begun to moderate. Imports from Russia fell 16.5 per cent month-on-month in August to around 2.1 million barrels per day, though Moscow remained India’s largest oil supplier. Preliminary estimates indicate that Russian supplies could decline further to around 1.9 million barrels per day in September.

Indian refiners have also been looking to the spot market for supplies for October and November amid uncertainty over possible US action. At the same time, the disruption to energy flows from West Asia has complicated efforts to substantially reduce Russian purchases.

India depends on overseas suppliers for more than 88 per cent of its crude requirements, making the availability and price of alternative barrels critical to its energy security.

Dimon said Washington should therefore consider not only its objective of putting economic pressure on Russia but also the potential consequences for India and the broader oil market before deciding how to use its new tariff powers.