US trade negotiators have informed India that reducing Russian oil purchases is crucial to lowering tariffs and sealing a trade deal, according to Reuters sources on September 26, 2025. The talks are positive, but more work is needed on market access, trade deficit, and Russian oil, a US official said.
President Donald Trump urges India, the EU, and NATO to reduce their purchases of Russian oil. This aims to cut Moscow’s revenue and end the Ukraine war. The administration links India trade talks to these demands, showing maximum leverage. Trump pledged to resolve the conflict from day one but faces slow progress.
US tells India that Russian oil curbs are key to trade deal progress https://t.co/smd0Av3dpZ https://t.co/smd0Av3dpZ
— Reuters (@Reuters) September 26, 2025The US imposed an additional 25% tariff on Indian imports, bringing the total to 50%. This pressures New Delhi to halt discounted Russian crude buys, souring negotiations. India defends its imports for economic benefits, accusing Western countries of hypocrisy despite their own sanctions.
Trump refrains from imposing extra tariffs on Chinese imports to support Russian oil. This maintains a delicate trade truce with Beijing. India and China are the top Russian oil buyers, hit by US sanctions limiting Moscow’s global access.
The US strategy reflects geopolitical priorities, with 70% of global oil trade affected by Ukraine sanctions (IEA, 2024). India’s $ 100 billion+ annual oil imports (World Bank, 2024) make compliance costly. The approach could reshape alliances amid Trump’s “America First” policy.
US-India trade talks hinge on Russian oil cuts for tariff relief. Trump’s frustration with Ukraine’s progress drives the pressure.
