United States tells India that restrictions on Russian oil imports are key to advancing trade deal

(Patria) - American trade negotiators have told their Indian counterparts that limiting purchases of Russian oil is key to reducing tariff rates for India and concluding a trade agreement, two people familiar with the talks told Reuters.

Although the trade negotiations are on a positive track, a US official said, more work is needed to ensure that India addresses US concerns regarding market access, the trade deficit and purchases of Russian oil.

US President Donald Trump has sought to pressure India, the European Union and NATO members to limit purchases of Russian oil as a way to reduce Moscow's revenues and speed up the end of the war in Ukraine.

The Trump administration has shown a willingness to use maximum leverage to advance its policy goals, as evidenced by linking trade negotiations with India to demands to limit purchases of Russian oil.

Trump has expressed growing frustration over the slow progress toward ending Russia's war in Ukraine, a conflict he promised to resolve from his first day in office.

The United States has imposed an additional 25 percent tariff on imports from India to pressure New Delhi to stop buying Russian crude oil at discounted prices, raising total punitive tariffs on Indian goods to 50 percent and complicating trade negotiations between the two democracies.

However, Trump has refrained from imposing additional tariffs on Chinese imports due to China's purchases of Russian oil, as his administration implements a delicate trade truce with Beijing.

India and China are the two largest buyers of Russian oil, which is already subject to numerous US sanctions that have limited Moscow's access to global markets.

In response, India has defended its oil imports, emphasizing economic benefits and accusing Western nations of hypocrisy for continuing to trade with Russia despite sanctions.