Trade Deal Pending, Oil Issue Remains a Question Mark

Uncertainty continues to surround the India–US trade agreement and India’s stance on Russian crude oil purchases, with contradictory signals emerging from the government. When asked whether India would stop buying Russian oil, External Affairs Minister S. Jaishankar redirected the question to Commerce Minister Piyush Goyal, stating he had no information. In turn, Goyal said the matter fell under the External Affairs Ministry, further fuelling speculation. So far, no official statement has been issued by the government clarifying India’s position.

Meanwhile, the United States has linked tariff relief to India’s alleged assurance on Russian oil imports. US President Donald Trump announced the removal of an additional 25% duty, warning that it would be reimposed if India continued purchasing Russian crude, directly or indirectly. However, Russia stated it had received no official communication from India on halting oil purchases and asserted that India has the right to buy oil from any source. On the trade front, despite Trump’s claim that tariffs would be reduced to 18% with immediate effect, the India–US joint statement confirmed only a framework for an interim deal, with tariff cuts yet to be implemented. With negotiations still ongoing, questions remain over safeguards, export prospects, and the timeline for tariff reductions.