While the passing of a recent Bill in the US Senate facilitating extra tariffs on buyers of Russian oil is a matter of concern, talks between India and the US on the issue so far have been reassuring, a senior official said Thursday.
The Bill and its impact on the deal being negotiated has been raised by the Indian side during talks on an interim bilateral trade deal which are being held under the framework of the Joint Statement made public on February 7.
India’s imports of Russian crude rose to a record high of 2.78 million barrels per day in July, accounting for 55.3% of the country’s total purchases of 5.03 mbd through July 29. Strong supplies of Russian Urals crude helped refiners navigate continuing volatility in West Asia, even as Moscow sharply cut discounts to $2-3/barrel recently.
Despite the 10% additional tariffs by the US under section 301 of the Trade Act, and now the Bill, both sides remain engaged and discussions are being held virtually on issues like Non-Tariff Barriers and other components key to the smooth working of any trade deal.
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The Senate on August 7 passed the bipartisan Sanctioning Russia and Iran Act of 2026, which would empower the US President to impose tariffs of up to 100% on buyers of crude oil from Russia. The legislation would still have to clear the House of Representatives and receive the President’s signature before becoming law.
“The legislation is the internal process of the US. I do not think we should comment on that,” another official said, adding that India continues to actively engage with US authorities to resolve outstanding trade issues while working toward early conclusion of the Bilateral Trade Agreement (BTA).
The additional 10% tariffs were imposed by the US after an investigation by US Trade Representative (USTR) on the laws of the 60 key trade partners that enable import of goods made with forced labour thereby hurting US businesses.
Another investigation is ongoing against India regarding policies that enable excess manufacturing capacities. The report on the investigation and possible tariff action that the US might initiate is awaited.
“India has been part of those processes (of investigation). We have given our submissions,” the official said.
The next step is that USTR will come up with the draft findings of the investigation. After that, countries will again get a chance to give their final submissions before the final findings are released.
“So we are engaged with them. It’s taking time on their side, but I think hopefully it will come through in weeks or months,” the official added.
TOPICSECONOMYIndia-US trade dealRussian OilThis article was first uploaded on August thirteen, twenty twenty-six, at fifty-six minutes past six in the evening. © The Indian Express (P) Ltd