U.S. President Donald Trump speaks to the press after meeting with Indian Prime Minister Narendra Modi in the Oval Office of the White House on February 13, 2025 in Washington, DC.
Jim Watson | AFP | Getty Images
In a sign of easing pressure on India, US President Donald Trump said trade talks with New Delhi were progressing well and he may visit the country next year.
Speaking to reporters at the White House on Thursday, President Trump said India had “almost stopped buying oil from Russia” and that he intended to visit the country in 2026 if Prime Minister Narendra Modi invites him.
President Trump recalled his previous visit to India and called Prime Minister Modi a “friend” and a “great man.”
Relations between India and the US have been under stress in recent months, with experts warning that a lack of chemistry between the two leaders is leading to a breakdown in ties.
High tariffs, $100,000 fees for H-1B visas, and Trump’s repeated claims that he helped broker a ceasefire between India and Pakistan and India’s purchase of Russian oil are among the issues that have soured relations between New Delhi and Washington in recent months, experts say.
India currently faces a 50% tariff on exports, higher than the 47% tariff imposed on China.
“Negotiations between New Delhi and Washington DC are ongoing and both sides appear optimistic that a trade deal can be reached by the end of the year, and possibly within the next few weeks,” said Alexandra Harman, head of Southeast Asia research at Oxford Economics.
Tariffs on Indian goods could be cut to 20% from the current 50%, putting India on par with Asian peers such as Vietnam, Thailand and the Philippines, he said.
Hellman added that basic tariffs on India “may not fall to the 15% level of Japan and South Korea” due to issues such as limits on Russia’s oil purchases, agricultural imports and limits on the extent of its commitments to large U.S. investments.
Last month, the United States imposed sanctions on Russian oil giants Rosneft and Lukoil, which will go into effect on November 21. As a result, Indian and Chinese refiners have begun cutting back on imports of Russian crude oil.
Russian crude oil is trading at the steepest discount to Brent crude in Asia this year as major refiners in India and China cut purchases, Reuters reported on Thursday.
India’s Ministry of Oil and Natural Gas did not immediately respond to CNBC’s questions about the country’s cuts to Russian oil imports.
“Over the long term, a complete phase-out of Russian oil is not realistic for India,” said Prateek Pandey, head of APAC oil and gas research at Rystad Energy, adding that as Russian crude becomes available at a deep discount, “New Delhi’s ‘economy first’ approach will be tested more than ever.”
