Saturday, March 29, 2025
India to Trump: Remove 25% Tariff First, Only Then Trade Deal Talks Possible
India–US Relations Update | August 29, 2025
New Delhi: Trade negotiations between India and the United States have hit another roadblock. India has firmly told Washington that discussions on a comprehensive trade deal can only move forward once the U.S. withdraws the additional 25% tariff imposed on crude oil imports from Russia.
According to a senior official from India’s Ministry of Commerce and Industry, “We are not negotiating a trade deal at this moment, but talks with the U.S. continue. For any agreement to be meaningful, the first step must be reconsideration of the 25% additional duty. If a trade pact is signed while this duty remains in place, our exporters gain no real benefit.”
Sources revealed that an American delegation was scheduled to visit New Delhi on August 25 to resume discussions. However, President Donald Trump abruptly called off the trip, citing India’s continued purchase of Russian crude oil as a “major obstacle.” Trump has repeatedly argued that India’s energy trade with Moscow undermines U.S. strategic interests and makes a balanced trade agreement difficult.
On August 6, Trump officially announced a 25% surcharge on crude oil imports linked to India’s Russian supplies. He described India’s move as “against U.S. interests” and warned that it could negatively impact the prospects of a fair trade framework between the two nations.
Efforts to finalize a broad-based trade agreement have been ongoing for years. Key areas under discussion include agriculture, information technology, pharmaceuticals, and energy. Despite multiple rounds of talks, disagreements over tariffs and import-export terms have repeatedly stalled progress.
This is not the first time tariff disputes have disrupted relations. Back in 2019, the U.S. removed India from the Generalized System of Preferences (GSP), which had allowed Indian exports preferential access to American markets. India retaliated by imposing counter-tariffs on a range of U.S. products.
For now, India has sent a clear message: there will be no progress on the trade deal until Washington rolls back the tariff barrier.
