WASHINGTON — The United States will cut tariffs on imports from India after Indian Prime Minister Narendra Modi pledged to stop buying Russian oil, President Donald Trump said Monday. Indian refiners say they need through March 2026 to wind down Russian oil contracts and rework supply lines without disrupting output, Feb. 2, 2026.
Russian oil wind-down: why the transition is not immediate
Trump said the agreement would reduce U.S. duties on Indian goods to an 18% rate and roll back an additional levy tied to India’s purchases of Russian oil. Reuters described the shift as a cut to 18% from a combined 50% tariff, but said key details — including the start date and any deadline for ending imports from Russia — were not yet public.
The extra duty on India was imposed in 2025 in a presidential action that cited India’s importation of Russian Federation oil, according to the White House’s Aug. 6, 2025 order.
Two refining sources told Reuters that companies have already booked cargoes loading in February that are due to arrive in March, and they have not yet been ordered by the Indian government to halt new purchases.
Trump said India would replace Russian oil with more supplies from the United States and possibly Venezuela. “He agreed to stop buying Russian Oil, and to buy much more from the United States and, potentially, Venezuela,” Trump said.
The Associated Press reported that Trump framed the tariff relief as part of months of U.S. pressure on New Delhi over its energy trade with Russia, while India signaled it would lower barriers on U.S. goods as part of the package.
Refiners with long-term dependence on Russian crude may face the sharpest near-term constraints. Reuters said Russia-backed Nayara Energy relies on Russian supplies after other sellers pulled back amid payment and sanctions-related complications.
How India’s crude slate shifted after 2022
After Russia’s Feb. 24, 2022, invasion of Ukraine, Indian buyers moved quickly into discounted barrels that many Western customers avoided. An April 25, 2022 Reuters report found India bought more than twice as much Russian crude in the first two months of the war as it imported in all of 2021.
A Reuters story from October 2023 said oil from Russia had risen to about two-fifths of India’s overall imports, consolidating Russia’s position as India’s top supplier at the time.
A March 2024 Reuters report said Russian oil accounted for about 32% of India’s overall imports in February 2024, though volumes were affected by sanctions and price-cap scrutiny.
For now, refiners and traders will watch for a formal Indian directive, clarity on U.S. tariff implementation and whether the pledge becomes a hard stop or a phased reduction in Russian oil purchases as contracts roll off.
Neither government has released full implementation details, and the tariff rollback will require formal U.S. action. Refiners say their next steps hinge on written guidance from New Delhi and the timing of any U.S. notice.
