Curb Russian oil imports to unlock trade deal, US tells India

US trade negotiators have informed their Indian counterparts that a reduction in Russian oil imports is key to lowering tariffs on Indian goods and finalising a trade deal, according to a Reuters report, citing two sources familiar with the discussions.

Although talks are progressing positively, a US official said India must do more to address American concerns regarding market access, the trade imbalance, and continued purchases of Russian crude.

President Donald Trump has intensified pressure on India, the European Union, and Nato allies to curb Russian oil imports in a bid to slash Moscow’s revenue and accelerate an end to the war in Ukraine.

The Trump administration has demonstrated a readiness to apply maximum pressure to achieve its foreign policy objectives, linking progress on a trade deal with India to demands that New Delhi curb its purchases of Russian oil.

Frustrated by the slow pace of efforts to end the war in Ukraine — a conflict he vowed to resolve on his first day in office — President Trump has increasingly tied economic measures to geopolitical goals.

To push India toward compliance, the US has imposed an additional 25% tariff on Indian imports, raising total duties to 50%. The move has strained trade talks between the two countries, both of which are strategic democracies.

However, Trump has avoided placing further tariffs on Chinese goods, despite Beijing’s continued imports of Russian crude, as his administration seeks to maintain a fragile trade truce with China.

India and China remain the top two buyers of Russian oil, which is under heavy US sanctions aimed at restricting Moscow’s access to global markets.

In its defence, India has justified its Russian oil imports on economic grounds and has criticised Western nations for what it calls a double standard — continuing trade with Russia even as they pressure others to stop.

With inputs from agencies