The United States has told India that reducing its dependence on Russian oil is crucial for sealing a trade agreement that would lower tariffs and expand market access.

Officials familiar with the talks say discussions are moving forward but stress that Washington still has concerns about India’s trade deficit, barriers to American goods, and its continued purchase of Russian crude.

President Donald Trump has directly connected the trade negotiations to energy policy, recently increasing tariffs on Indian exports by an additional 25%. This brings total duties to 50%, creating fresh tension between the two democracies.

Despite India and China being the largest buyers of Russian oil, the Trump administration has not imposed similar measures on Beijing, citing efforts to maintain a delicate trade truce.

New Delhi has pushed back, saying affordable Russian oil is essential for its economy and accusing Western governments of hypocrisy for continuing certain trade ties with Moscow while pressuring others to cut back.

Negotiators from both sides are scheduled to meet in New Delhi soon, but the disagreement over Russian oil imports remains the biggest hurdle to finalising a trade pact.