GTRI Urges US to Remove 25% Tariff on Indian Goods Following India's Russian Oil Import Cutback
After India significantly rolled back its direct imports of Russian oil, increasing reliance on US energy supplies, the Indian trade think tank GTRI has called on the US to remove the 25% tariff imposed on Indian goods. This tariff was originally a penalty for India's earlier Russian oil imports but is now seen as unjustified due to India's energy pivot and expanded US crude and LPG imports.
India is set to reduce direct imports of Russian crude oil starting late November 2025, following new US sanctions targeting major Russian exporters Rosneft and Lukoil. Key Indian refiners, including Reliance Industries and state-owned entities, have announced plans to halt or suspend Russian crude purchases, causing a sharp reduction in direct Russian oil imports. Meanwhile, India is increasing procurement from alternative sources, with US crude imports peaking at 568,000 barrels per day in October 2025 and an agreement secured for US LPG imports covering nearly 10% of India's annual LPG needs in 2026. Against this backdrop, the Indian trade think tank GTRI has called on the US government to promptly remove the 25% tariff on Indian imports. This tariff was initially imposed as a punitive measure against India’s earlier purchases of Russian oil but is now deemed unfair given the changed trade realities. Former US President Trump acknowledged India’s withdrawal from Russian oil and signaled intentions to reduce these tariffs. GTRI argues that lifting the tariff immediately would demonstrate US responsiveness and fairness, strengthening bilateral trade relations, especially as India is among the few major economies significantly scaling up imports of US energy products. The move reflects broader strategic realignments in global energy trade and diplomacy following sanctions on Russia.[1][2][3]
