U.S.-India Trade Deal Hindered by Russian Oil Purchases

U.S. trade negotiators have informed their Indian counterparts that reducing purchases of Russian oil is pivotal for decreasing India's tariff rate and finalizing a trade agreement, two sources familiar with the discussions revealed to Reuters.

Despite the overall positive trajectory of trade negotiations, a U.S. official noted that more actions are necessary for India to address American concerns regarding market access, the trade deficit, and its purchases of Russian oil. U.S. President Donald Trump has applied pressure on India, the EU, and NATO to decrease Russian oil imports to cut Moscow's revenue and accelerate the Ukraine war's conclusion.

The U.S. has imposed an additional 25% tariff on Indian imports to push New Delhi to halt its discounted Russian crude oil purchases, elevating total tariffs on Indian goods to 50% and affecting trade talks between the countries. However, Trump has shown restraint in imposing new tariffs on China due to a delicate trade truce with Beijing, despite China's similar actions regarding Russian oil.