India and the United States remain at an impasse over high tariffs on Indian exports, with the Donald Trump administration linking any relief to India's continued imports of discounted Russian oil. Despite ongoing negotiations, US officials have emphasized that India must further reduce its purchases of Russian crude, which Washington argues indirectly supports Russia's war in Ukraine. While India has started to shift its oil sourcing toward the Middle East, Russian oil still makes up a significant share of imports, largely due to attractive pricing.

Meanwhile, India has finalized a major free trade agreement with the European Union, gaining increased market access and immigration rights, in what is seen as a strategic move amid US protectionist policies. US officials have sent mixed signals about the possibility of easing tariffs, noting India's declining Russian oil imports but maintaining that more needs to be done. Data shows India's Russian oil imports have dropped from their peak, and analysts expect purchases to remain below previous highs as India seeks more stable and compliant sources.