India-US Trade Talks Face Fresh Pressure Over Russian Oil

The scope of trade talks narrowed after US President Donald Trump signed a congressional bill into law that gives him authority to impose tariffs of up to 100% on countries buying significant Russian oil, including India & China. 

This new US tariff bill threatens India, as cutting Russian oil imports could raise fuel prices or strain government finances, even as it faces pressure to maintain purchases. As a result, India has also warned the US, saying such measures could harm ties. 

Russia is the world’s third-biggest oil exporter, whereas India ranks among the biggest buyers of Russian oil, helping Moscow to withstand sweeping Western sanctions since it launched its full-scale invasion of Ukraine in 2022.

Trade deal talks between India and the United States have reached a point where further compromise may be difficult, Finance Minister Sitharaman said on Monday, in the latest sign of difficulties in long-running efforts to finalise a bilateral agreement.

On October 1, 2026, US Trade Representative Jamieson Greer said, “A trade agreement was not imminent, after meeting India’s Trade Minister Piyush Goyal in the US.”

Sitharaman remarked that the balance of trade was in India’s favour, while the deficit was in Washington’s favour. They want to reduce that imbalance.

Sitharaman said the talks have gone beyond give-and-take and are “very very difficult” for both sides, citing limited room to manoeuvre. 

“It’s been a very hard and vigorously negotiated agreement”, Sitharaman said at an event in India’s capital, New Delhi, but also added that negotiations were continuous.