India–US Trade Deal: White House Addresses Russian Oil Purchases and Zero-Tariff Claims
As India and the United States move closer to finalising what both sides have described as a “historic” trade agreement, questions continue to surround certain key claims linked to the deal. These include reports about India halting purchases of Russian oil and assertions that New Delhi has agreed to impose zero tariffs on US goods.
Several of these claims were made by former US President Donald Trump, but have not been formally clarified by either government. Amid growing uncertainty, the White House released an official factsheet on Monday in an effort to address the concerns.
Is India Halting Its Purchases of Russian Oil?
According to the factsheet issued by the Trump administration, the US agreed to remove an additional 25% tariff on imports from India in recognition of New Delhi’s stated commitment to stop purchasing oil from Russia. Following this, Trump signed an Executive Order officially removing the extra tariff.
However, confusion arose after Russia indicated that it had not received any communication from India regarding a halt in oil purchases. Adding to the uncertainty, India’s Ministry of External Affairs reiterated its long-standing position when questioned by reporters, stating that the country’s energy decisions would continue to be guided by national interest and the needs of its 1.4 billion population.
What About Zero Tariffs for US Goods?
While announcing the trade deal, Trump claimed that India had agreed to reduce both tariff and non-tariff barriers on US goods to zero.
However, the joint statement released by both countries presents a more measured position. It states that India has agreed to either eliminate or reduce tariffs on all US industrial goods and a wide range of food and agricultural products, including dried distillers’ grains (DDGs), red sorghum, tree nuts, fresh and processed fruits, certain pulses, soybean oil, wine, spirits, and other products.
The White House factsheet echoes this position but does not specify which tariffs will be fully eliminated and which will merely be reduced. As of now, the detailed tariff structure under the proposed agreement has not been made public.
Negotiations Still Ongoing
The factsheet further notes that negotiations between India and the United States will continue under the framework of the Bilateral Trade Agreement (BTA). These talks will focus on unresolved issues, including remaining tariff and non-tariff barriers, customs facilitation, regulatory practices, services and investment, intellectual property, labour and environmental standards, government procurement, and trade-related practices involving state-owned enterprises.
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