New Delhi [India]: India should press the United States to roll back the 25 per cent “Russian oil” tariff before moving forward with any trade agreement, according to a report by the Global Trade Research Initiative (GTRI).
The think tank recommended that India first complete its transition away from sanctioned Russian oil, then seek a withdrawal of the tariff to restore competitiveness, and only afterward resume balanced trade talks with Washington on equal footing.
“India must first conclude its exit from sanctioned Russian oil, then secure a rollback of the 25 per cent ‘Russian oil’ tariff to regain competitiveness,” GTRI stated in its report.
It noted that India has already stopped importing oil from sanctioned Russian entities — a move acknowledged by U.S. President Donald Trump.
With that step completed, the report said India’s next priority should be securing the tariff rollback. Doing so would reduce the overall U.S. duty burden on Indian goods from 50 per cent to 25 per cent and enhance competitiveness in key sectors such as textiles, gems and jewellery, and pharmaceuticals — without rushing into a comprehensive trade pact.
Once tariffs are reduced, GTRI suggested India resume negotiations for a balanced trade deal with the U.S., targeting parity with partners like the European Union and aiming for average industrial tariffs of about 15 per cent.
The report also advised India to await the U.S. Supreme Court’s ruling on the legality of the Trump-era tariffs. The Court is currently hearing a case on whether the president can impose such tariffs under the International Emergency Economic Powers Act (IEEPA).
On November 11, 2025, President Trump said the U.S. and India were “pretty close” to a trade deal and promised lower tariffs, acknowledging that India had “substantially reduced” its purchases of Russian oil.
