US President Donald Trump on Monday reaffirmed his stance that India has drastically curtailed imports of Russian oil, adding that his administration is now considering lowering the steep tariffs imposed on Indian goods earlier this year.
The US President’s remarks come as Washington and New Delhi continue negotiations toward a potential trade agreement.
Responding to questions on the status of the trade talks and the possibility of reducing tariffs, Trump stated, “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. At some point, we’re going to be bringing them down…”
The Trump administration had earlier raised tariffs on several Indian exports to as high as 50 per cent, introducing an additional 25 per cent penalty tariff linked to India’s continued purchase of Russian crude oil. The move was part of Washington’s broader effort to isolate Moscow economically following Western sanctions.
In recent weeks, Trump has repeatedly asserted that Prime Minister Narendra Modi has committed to reducing crude oil imports from Russia.
“They (trade talks with India) are going good, he stopped buying oil from Russia largely. He is a friend of mine, and we speak and he wants me to go there. We will figure that out, I will go…” the President said last week, expressing optimism about bilateral progress.
However, India has categorically denied Trump’s claims as the Ministry of External Affairs (MEA) clarified there was no recent phone call or discussion between the two leaders.
On the question of whether there was a conversation or a telephone call between Prime Minister Modi and President Trump, MEA spokesperson Randhir Jaiswal told reporters, “I am not aware of any conversation yesterday between the two leaders.”
Trump made his latest comments at the swearing-in ceremony of Sergio Gor, the new US Ambassador to India and Special Envoy to Central and South Asia.
His remarks suggest a possible recalibration of the administration’s approach toward India as trade negotiations gain momentum.
India currently faces one of the highest tariff rates globally on its exports to the U.S.—a combined 50 per cent, of which 25 per cent are reciprocal duties and another 25 per cent were imposed as a punitive measure over Russian oil imports.
Indian Commerce and Industry Minister Piyush Goyal recently described trade talks with the U.S. as “progressing well” and said both sides are working toward a “fair and equitable deal.”
He added that senior officials from both countries remain in close contact to resolve tariff-related and market access issues.
Trade analysts believe Trump’s latest comments could open a window for tariff relief. Ajay Srivastava, founder of the Global Trade Research Initiative (GTRI), said India should insist that the US remove the 25 per cent ‘Russian oil’ penalty tariff before finalizing any trade agreement. “India should push for the rollback of the tariff, especially since Trump himself claims India has substantially reduced Russian crude imports,” Srivastava said.
GTRI further recommended that India completely phase out any remaining sanctioned Russian crude purchases before pressing Washington to lift the extra duties—restoring competitiveness to Indian exports and strengthening its negotiating position.
While Trump acknowledged that his own tariff measures had strained U.S.-India relations, his latest remarks indicate a potential softening of stance.
With both sides signaling intent to move forward, a long-awaited US-India trade deal could be within reach if diplomatic momentum continues.