New Delhi | January 6, 2026
India has signaled it will not bow to pressure from the United States, dismissing President Donald Trump’s warning on additional tariffs and making it clear that imports of Russian crude oil will not be fully halted.
Senior government sources said New Delhi remains firm on the proposal submitted to Washington under the Bilateral Trade Agreement (BTA) framework in December and will continue efforts to bridge the export gap with the US by exploring new global markets.
The stance comes after President Trump warned that the United States could soon impose higher tariffs on India, citing New Delhi’s continued purchase of Russian crude oil. India, however, fears that agreeing to a complete ban on Russian oil imports could allow Washington to impose further conditions in future trade negotiations.
As a result, India is neither rushing into a deal nor opting for retaliatory measures, choosing instead a calibrated and strategic approach to trade talks with the US.
Trust Deficit Slows Trade Progress
According to officials, the biggest hurdle in finalizing the BTA is a growing trust deficit. Last month, India proposed the removal of a 25 percent additional tariff imposed by the US on certain goods and suggested reducing the remaining 25 percent tariff to 15 percent.
In return, India offered to increase crude oil imports from the US and expand cooperation across several sectors. Following the proposal, India also reduced its imports of Russian crude as a goodwill measure.
Russian Oil Imports Already Reduced
India’s crude oil imports from Russia have declined following the imposition of additional US tariffs and sanctions on select Russian companies.
Data shows that Russia accounted for 35.2 percent of India’s crude oil imports in FY 2023–24, which fell to 32.3 percent in FY 2024–25. The decline accelerated in the current financial year, with imports dropping to 1.77 million barrels in November and further to 1.2 million barrels in December.
Despite the reduction, officials emphasized that India will not commit to a complete halt, citing energy security concerns and the need for diversified supply sources.
