The United States has said that India needs to take stronger steps to reduce its purchase of Russian oil before any tariff relief can be offered. This has become an important issue in trade talks between the two countries.
What Did the US Say About India’s Russian Oil Imports?
US Trade Representative Jamieson Greer stated that India has already reduced some of its Russian crude oil imports. However, according to Washington, those efforts are still not enough.
The US believes that continued large purchases of Russian oil indirectly support Russia’s war economy. Because of this concern, the issue is now directly linked to trade negotiations between India and the US.
Why Does India Still Buy Russian Oil?
India finds it difficult to completely stop buying Russian oil mainly because of price benefits.
- Russian crude is sold at discounted prices
- Lower prices help India manage fuel inflation
- It supports India’s energy security needs
- India depends heavily on imported oil
These economic reasons make Russian oil attractive for Indian refiners, even as geopolitical pressure increases.
How Are Tariffs Connected to This Issue?
The US had earlier imposed a 50% tariff on certain Indian goods. Washington argued that India’s oil trade with Russia was a factor behind the decision. Now, tariff relief discussions are tied to how much India reduces its Russian oil purchases.
Greer also mentioned that he maintains regular contact with Indian officials and has a positive working relationship. Still, the US position remains clear — more action is required.
Will India Stop Buying Russian Oil Soon?
Analysts believe a full stop is unlikely in the near term.
- Discounted oil saves India billions of dollars
- Global supply risks remain high
- Energy demand in India is growing fast
- Alternative supplies may be costlier
Because of these factors, Russian oil may continue to form a major share of India’s imports, possibly even into 2026.
What Does This Mean for India-US Trade Relations?
This issue has become one of the biggest hurdles in India-US trade negotiations. While both countries want stronger economic ties, energy policy differences are slowing progress.
Future trade decisions, including tariff reductions, may depend on how India balances its economic interests with geopolitical expectations.
India–U.S. Trade Snapshot
Trade between the United States and India reached about $212.3 billion in goods and services in 2024, marking an 8.3% rise from 2023. This shows steadily growing economic ties, with both countries increasing exchanges across products and services.
In goods trade, total trade stood at $128.9 billion. U.S. exports to India were $41.5 billion, up 3.0%, while imports from India were higher at $87.3 billion, rising 4.5%. This led to a U.S. goods trade deficit of $45.8 billion, which widened by 5.9% compared to the previous year.
In services trade, total trade reached $83.4 billion. U.S. services exports to India grew strongly to $41.8 billion (up 15.9%), while imports were $41.6 billion (up 15.4%). The U.S. recorded a small services trade surplus of $102 million in 2024, improving from a $76 million deficit in 2023.
Quick Summary
Main issue: US wants India to reduce Russian oil imports more.
India’s challenge: Russian oil is cheaper and important for energy security.
Trade impact: Tariff relief depends on further action.
Outlook: Russian oil likely to remain significant in India’s imports.
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