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India's Trade Strategy: Why US Must Drop Russian Oil Tariffs First

India needs to push the United States to remove those 25% Russian oil tariffs before moving forward with any trade agreement. The country has already stopped buying oil from sanctioned Russian companies, which President Trump himself acknowledged. Getting these tariffs rolled back would significantly help Indian exports in key sectors like textiles and pharmaceuticals. Only after securing this tariff reduction should India resume balanced trade talks with the US.

Key Points: India Should Press US to Roll Back Russian Oil Tariffs

  • India has already ended oil imports from sanctioned Russian firms
  • Securing tariff rollback would reduce US duty burden from 50% to 25%
  • Move would boost competitiveness in textiles, gems, and pharmaceuticals
  • Report advises waiting for US Supreme Court verdict on Trump tariffs
2 min read

India should press US to roll back Russian oil tariffs before trade deal: GTRI

GTRI report urges India to secure removal of 25% Russian oil tariffs before trade deal with US, boosting competitiveness in textiles, gems, and pharmaceuticals.

"India to first complete its exit from sanctioned Russian oil, then secure a rollback of the 25 per cent 'Russian oil' tariff to restore competitiveness. - Global Trade Research Initiative"

New Delhi, November 12

India must urge the United States to withdraw the 25 per cent "Russian oil" tariffs before proceeding with any trade agreement, stated a report by the Global Trade Research Initiative (GTRI).

According to GTRI, India should first complete its exit from sanctioned Russian oil, then secure a rollback of the 25 per cent "Russian oil" tariff to restore competitiveness, and only afterward resume balanced trade negotiations with the U.S. on equal terms.

GTRI stated, "India to first complete its exit from sanctioned Russian oil, then secure a rollback of the 25 per cent 'Russian oil" tariff to restore competitiveness."

The report added that India has already ended oil imports from sanctioned Russian firms, a step that President Donald Trump has acknowledged.

With Step 1 complete, India should now focus on securing the tariff rollback. Once Russian oil imports have been curtailed, India must press Washington to withdraw the 25 per cent tariff, which would reduce the overall U.S. duty burden on Indian goods from 50 per cent to 25 per cent.

This move would help boost competitiveness in key sectors such as textiles, gems and jewellery, and pharmaceuticals, without rushing into a full trade deal.

After the tariffs come down to 25 per cent, the report recommended that India resume trade talks with the U.S. for a balanced agreement, aiming for parity with partners like the European Union and targeting average industrial tariffs of about 15 per cent.

The report also advised India to wait for the U.S. Supreme Court's verdict on the Trump tariffs. The Court is currently hearing a major case on whether the president has authority under the International Emergency Economic Powers Act (IEEPA) to impose such tariffs.

On November 11, 2025, President Donald Trump said the United States and India were "pretty close" to a trade deal and promised to lower tariffs on India.

He added that India had "stopped buying Russian oil very substantially" and that the tariffs would soon be brought down.

- ANI

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Reader Comments

P
Priya S
Good strategy by GTRI. We shouldn't rush into any trade deal without getting our demands met first. The US needs to understand that India is not a country that can be pressured into unfair agreements. Our government is handling this well.
A
Arjun K
While I agree with the strategy, I'm concerned about the timing. Waiting for US Supreme Court verdict might delay things too much. Our exporters are already suffering from high tariffs. We need faster resolution. 🤔
S
Sarah B
As someone working in the gems and jewellery sector, this tariff reduction would be a huge relief. Our industry has been struggling with these unfair duties. Hope our negotiators stand firm on this position.
V
Vikram M
The step-by-step approach makes sense. Complete exit from Russian oil ✅, now tariff rollback, then trade talks. This shows India's mature diplomacy. We're not desperate for any deal - we want a fair deal that benefits both countries.
M
Michael C
I appreciate that GTRI is recommending a balanced approach rather than rushing into agreements. India should get terms similar to what EU gets. Equal treatment is what we deserve in international trade. Well thought out report! 👍

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