GTRI Urges India to Halt Sanctioned Oil Imports, Seek Tariff Rollback for Fair US Trade Talks

Economy

1st November 2025, 5:57 AM

GTRI Urges India to Halt Sanctioned Oil Imports, Seek Tariff Rollback for Fair US Trade Talks

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Short Description :

The Global Trade Research Initiative (GTRI) has proposed a three-step plan for India to protect its trade interests with the US. This includes stopping oil imports from sanctioned Russian firms like Rosneft and Lukoil to avoid secondary sanctions, pressing the US to remove the 25% 'Russian oil' tariff on Indian exports once imports cease, and resuming trade negotiations only after tariffs normalize and on fair, balanced terms.

Detailed Coverage :

The Global Trade Research Initiative (GTRI) has advised India to adopt a strategic three-step approach to safeguard its trade interests during ongoing trade negotiations with the United States.

Firstly, India should immediately halt oil imports from sanctioned Russian companies such as Rosneft and Lukoil. This action is crucial to prevent exposure to secondary sanctions imposed by the US, which could severely disrupt India's financial and digital systems, including access to the SWIFT payment network and dollar transactions.

Secondly, once India stops these specific oil imports, it should strongly urge Washington to withdraw the punitive 25 per cent "Russian oil" tariff. This tariff, imposed on July 31, has significantly impacted Indian exports, doubling the total duties on goods to 50 per cent and causing a 37 per cent drop in exports between May and September.

Finally, GTRI recommends that trade negotiations with the US should only resume once tariffs are normalized. Furthermore, these talks must be conducted strictly on fair and balanced terms, with India aiming for parity with major partners like the European Union, seeking average industrial tariffs around 15 per cent and duty-free access for key sectors. GTRI warns that while tariffs directly affect exporters, secondary sanctions pose a greater risk by potentially paralyzing critical digital and financial infrastructure.

Impact: This news has a significant impact on India's trade policy, financial systems, and economic relationship with the US. It could lead to shifts in energy sourcing and renegotiation of trade terms, affecting various Indian export sectors. Rating: 8/10

Difficult Terms: Secondary Sanctions: Sanctions imposed by one country on entities that do business with a country already under sanctions. SWIFT: A global system used by banks for secure financial messaging and transactions. Bilateral Trade Agreement (BTA): A trade pact agreed between two countries. Tariff: A tax or duty to be paid on imported or exported goods.