2 weeks ago
India-US trade talks on track despite Russian-oil tariff plan
India is a big country that buys a lot of oil from other countries.
Russia sells oil, and India buys a huge amount of it.
Some American leaders do not like that because they want to punish Russia.
The United States Senate said it might add very big extra fees, called tariffs, on countries that buy oil from Russia.
But these fees are not a law yet, because more American leaders still need to say yes.
Leaders from India and the United States are still talking and working on a trade deal.
India says the talks are going well and both sides are staying in touch.
Buying Russian oil helps Indian refineries keep working, even when the discounts Russia offers are smaller.
India wants to keep buying the oil even if America adds fees, so the two countries will keep talking to find a solution.
The US Senate passed the bipartisan Sanctioning Russia and Iran Act of 2026 on August 7, which would empower the President to impose tariffs of up to 100% on buyers of Russian crude oil.
India-US talks on an interim bilateral trade deal remain reassuring, with the Indian side raising the Bill during negotiations under the February 7 Joint Statement framework.
India's imports of Russian crude hit a record 2.78 million barrels per day in July, accounting for 55.3% of its total purchases of 5.03 million barrels per day through July 29.
The legislation still must clear the House of Representatives and receive the President's signature before becoming law.
India is also subject to existing 10% additional US tariffs under Section 301 and faces ongoing USTR investigations on forced labour-related laws and excess manufacturing capacity.
- Who
- Senior officials from India and the United States, along with the US Senate and the US Trade Representative.
- What
- India-US bilateral trade talks continue despite a US Senate bill that would allow tariffs of up to 100% on buyers of Russian crude oil.
- Where
- Between India and the United States, with discussions being held virtually.
- When
- As of August 2026; the US Senate passed the bill on August 7, 2026.
- Why
- Because India's record purchases of Russian crude conflict with US efforts to sanction buyers of Russian oil.
India's Position
US Position
Russian oil imports
India's Position
India's record Russian crude imports help refiners navigate continued volatility in West Asia, even as Moscow cut discounts to $2-3 per barrel.
US Position
The US Senate passed a bill empowering the President to impose tariffs of up to 100% on buyers of crude oil from Russia.
Trade deal progress
India's Position
Indian officials say talks so far have been reassuring and India continues to actively engage with US authorities toward early conclusion of the Bilateral Trade Agreement.
US Position
The US has imposed 10% additional tariffs after a USTR investigation on forced labour laws and is running another investigation into India's excess manufacturing capacity policies.
US legislative process
India's Position
Indian officials say the legislation is the internal process of the US and that India should not comment on it.
US Position
The Senate-passed bill would empower the President to impose the tariffs once it clears the House of Representatives and receives the President's signature.
Key facts
- US Senate bill
- Sanctioning Russia and Iran Act of 2026
- Bill passed Senate
- August 7, 2026
- Potential tariff on Russian oil buyers
- Up to 100%
- India's Russian crude imports (July)
- 2.78 million barrels per day (55.3% of total)
- India's total crude imports
- 5.03 million barrels per day through July 29
- Russian crude discount
- $2-3 per barrel
- Existing US tariff
- 10% additional tariffs under Section 301
- Trade talk framework
- Joint Statement of February 7, 2026
Quotes
Indian senior official
An unnamed Indian trade official engaged in U.S. talks
“So we are engaged with them. It’s taking time on their side, but I think hopefully it will come through in weeks or months.”
financialexpress.com
“India has been part of those processes (of investigation). We have given our submissions.”
financialexpress.com
Sources
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