U.S. trade negotiators have told India that cutting purchases of Russian oil is critical to lowering tariffs and moving forward with a trade agreement, according to people familiar with the discussions.
Although talks are progressing positively, a U.S. official stressed that more work is needed. Washington wants India to address concerns about market access, the trade deficit, and its continued reliance on discounted Russian crude.
President Donald Trump has urged India, the European Union, and NATO allies to reduce Russian oil imports as part of a strategy to cut Moscow’s revenue and speed up an end to the war in Ukraine. His administration has been willing to apply maximum pressure, tying trade negotiations with India directly to its oil-buying practices.
Trump has shown growing frustration over the slow pace of ending Russia’s war, which he vowed to resolve from his first day in office. To increase leverage, the U.S. imposed an additional 25% tariff on imports from India, raising total duties to 50%. This move has strained trade relations between Washington and New Delhi.
However, Trump has avoided placing new tariffs on Chinese imports despite Beijing’s purchases of Russian oil. His administration is carefully managing a fragile trade truce with China.
India and China remain the two biggest buyers of Russian oil, even as U.S. sanctions limit Moscow’s access to international markets. In response, India has defended its imports, highlighting economic benefits and accusing Western nations of double standards for maintaining trade with Russia despite sanctions.
