- US and India are close to finalising a trade deal, says Secretary Rubio
- Trade talks influenced US decision to waive sanctions on Russian oil buyers
- Trump paused 100% tariffs on Russian oil imports affecting India and China
US Secretary of State Marco Rubio on Monday said Washington is “very close” to finalising a trade deal with India, and indicated the negotiations were a factor in the Trump administration's decision to hold off on penal tariffs against buyers of Russian oil.
“We're trying to finalise a trade deal with India right now. We're very close to doing that. That's one of the things we take into consideration when the President makes a decision about national security waivers and things of that nature,” Rubio told reporters in Samarkand, ahead of his visit to India.
On Russian oil and gas, Rubio said the US has had to waive sanctions over the past few months because of their impact on global supplies and prices. “Every country has a complex set of factors that it has to take into account. Geography is real. For some countries, it's very difficult to acquire energy from alternative sources. That's not an excuse, but all of that has to be balanced when making foreign policy,” he said.
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His remarks come ahead of his scheduled arrival in Mumbai on Tuesday, October 20, for a two-day visit — his second trip to India in nearly five months.
100% Tariff Threat On Hold
Rubio's comments come days after US President Donald Trump paused the most punitive provisions of a new sanctions law that directly threatened India. Trump signed the Lindsey O. Graham Sanctioning Russia and Iran Act of 2026 into law on Sept. 18. The law, which was due to take effect on Oct. 18, provided for sanctions on Russian officials, financial institutions and other entities, along with tariffs of up to 100% on goods imported into the US from the five largest importers of Russian crude or gas, as well as any country that knowingly bought Russian oil or gas 30 days after enactment, or was among the top five countries helping Russia evade sanctions. It would also have allowed the US to raise duties on all Russian goods to as much as 500% ad valorem.
India was squarely in the crosshairs. As of end-August, China bought half of Russia's crude exports, followed by India at 37%, Turkey at 5% and the European Union at 5%, according to CREA.
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However, Trump signed an executive order on Friday evening waiving key sanctions and tariffs under the law, two days before its implementation deadline. The order, however, keeps in place existing sanctions on Russia under earlier executive orders. The order also granted a waiver from the 100% tariffs on the five largest purchasers of Russian oil and gas, including India and China. The waivers will remain in effect until the President or Secretary of State, in consultation with other relevant officials, determines further action is appropriate.
On the Indian side, Commerce and Industry Minister Piyush Goyal said on Oct. 10 that while India and the US had announced a framework for an interim trade agreement in February, circumstances have since changed and the pact will be finalised keeping those in mind.
“It was announced in February. Some circumstances have changed; the final decision will be made keeping that in mind,” Goyal said while addressing members of industry body PHDCCI.
Goyal did not specify what had changed, but the shifting US tariff landscape has prompted further negotiations on the first tranche of the bilateral trade agreement. India is seeking lower tariffs for its goods in the American market compared with competing exporters.
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