Commerce Sec.: US Will Resolve Trade Deal with India Once Russian Oil Purchases End

By Staff, Agencies

US Commerce Secretary Howard Lutnick stated that Washington intends to “sort out” a trade agreement with India once New Delhi ceases purchasing Russian oil and opens its market.

Lutnick’s remarks follow recent confirmations from US President Donald Trump and Indian Prime Minister Narendra Modi that trade talks between the two countries are ongoing, with both leaders optimistic about a timely conclusion.

In an interview with CNBC on Thursday, Lutnick emphasized, “We're going to sort out India. India basically has to open their market and stop buying Russian oil.” He reiterated claims that India had not been importing Russian oil prior to the Russia-Ukraine conflict.

“So, they're buying it, refining it, and then selling it to the rest of the world and making a bundle. The president called nonsense on that and said you got to stop that stuff. So, I think India we'll sort it out once they stop buying Russian oil,” he added.

Since the February 2022 escalation of the Ukraine conflict, Russia has supplied nearly 40% of India’s crude oil imports. Meanwhile, India has become a major exporter of refined fuels to Europe since 2023.

Last month, Washington imposed a 25% penalty tariff on most Indian imports tied to New Delhi’s Russian crude purchases, adding to an earlier 25% tariff after the countries failed to reach a trade agreement in early August.

At a Senate hearing on Thursday, Trump’s nominee for ambassador to India, Sergio Gor, echoed the call for India to end its Russian oil imports. “President Trump has been crystal clear on this. They must stop buying Russian oil,” he said, noting that trade issues are expected to be resolved in the coming weeks. Gor also added, “We hold our friends to different standards. We expect more from India than we do from other nations.”