Trump says tariffs on India very high because it purchases Russian oil; to be lowered
U.S. President Donald Trump speaks, during the swearing-in ceremony for Sergio Gor as U.S. Ambassador to India, at the White House in Washington, D.C., US
| Photo Credit:
REUTERS/Kevin Lamarque
US President Donald Trump has said tariffs on India are very high because it purchases Russian oil but they will be lowered “at some point” as Delhi is putting a stop to the transactions.
Sources indicate that India, which is planning to welcome Russian President Vladimir Putin next month to strengthen its economic and strategic partnership with Moscow, will continue to resist linking its trade deal with the US to limitations on its relationship with Russia.
“Well, right now, the tariffs are very high on India because of the Russian oil, and they’ve stopped doing the Russian oil. It’s been reduced very substantially. Yeah, we’re going to be bringing the tariffs down…At some point, we’re going to be bringing them down…” Trump said on Monday to reporters at the White House.
Trump was responding to a question on how close the US was in clinching a trade deal with India and if he was willing to consider lowering the current 50 per cent tariffs on the country.
The Trump administration imposed 25 per cent reciprocal tariffs on India, effective August 7, and then another 25 per cent tariffs as penalty for buying Russian oil on August 29, taking the total tariffs to 50 per cent. The tariffs have made most of India’s exports, especially labour-intensive goods like textiles, gems & jewellery and marine products, lose their competitiveness in the US market as competing countries such as Vietnam, Bangladesh and Indonesia face tariffs of 19-20 per cent.
Trade negotiating teams from both countries, which met face-to-face last month before Diwali in the US, made substantial progress in settling the details of increased market access for US goods in India in various sectors. But Washington’s insistence on rolling back the 25 per cent penalty only after it stopped purchasing Russian oil have been acting as a spoiler, a source tracking the matter said.
“Singling out India and asking it to stop purchasing Russian oil is not a legitimate demand and the country will not agree to such arm-twisting. Delhi has been respecting all restrictions so far and there is no logic behind pushing it to make commitments that go beyond that,” the source told businessline.
But it is important for India to strike a deal with the US as it is its largest export destination with exports growing 11.6 per cent (year-on-year) to $86.51 billion in FY25. However, following the tariffs imposed in August 2025, India’s exports to the US fell 12 per cent to $5.46 billion.
“India is trying to find a way around the problem and present a solution that would be acceptable to both sides which would include buying more energy from the US,” the source added.
India increased its oil sourcing from Russia to over a third of its total crude imports after the country offered big discounts following Western sanctions on it for its war on Ukraine in 2022. After the US recently imposed sanctions on top Russian oil companies Rosneft and Lukoil, India’s crude imports from Russia declined 28.93 per cent to $3,322 million in September 2025. However, despite the cut, which India says was dictated by economics and prevailing global situation, Russia remained India’s top supplier of crude during the month.
With the Russian President set to visit India next month, it is even more important for the country to showcase its goodwill towards Moscow. Last year, Prime Minister Narendra Modi and Putin had set a target of increasing bilateral trade to $100 billion by 2030, which is likely to be reinforced during the latter’s India visit next month.
In FY25, India’s bilateral trade with Russia was at $68.7 billion, of which India’s exports were at just $4.88 billion and there are efforts from both sides to make trade more balanced by increasing Russia’s purchases from India.
Published on November 11, 2025
