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Russia oil trade in focus after India-US trade deal: What we know so far
US imposed tariffs on Indian exports in August 2025 partly due to India's Russian oil imports. Recent deal reduces tariffs to 18%, with US claiming India will stop buying Russian oil, though India has not confirmed.
Why It Matters
The deal eases trade tensions between major economies, impacts Russia's oil revenues amid Ukraine war, and shifts India's energy sourcing strategy.
Timeline
5 Events
India's Commerce Minister comments on tariff cuts
February 5, 2026
Piyush Goyal states US will reduce tariffs from 50% to 18% within days via executive order after joint statement expected February 11-13.
US-India trade deal announced
February 2026
Trump and Modi separately announce tariff reduction to 18%, lifting punitive levy on Russian oil imports. Trump claims India agrees to stop Russian oil purchases and buy more US goods.
India criticizes US tariffs
August 4, 2025
Indian Ministry of External Affairs calls tariffs unjustified, defends Russian oil imports for affordable energy.
Tariffs doubled to 50% with punitive levy
August 27, 2025
Additional 25% punitive tariff linked to India's Russian oil purchases takes effect, raising total duties to 50%.
US imposes 25% reciprocal tariff on Indian goods
August 1, 2025
Trump administration imposes initial 25% tariff on Indian exports amid frustration over India's Russian oil imports and BRICS participation.