US Trade Representative Jamieson Greer has expressed optimism that India is already diversifying its energy imports away from Russia. Speaking at the Economic Club of New York this week, Greer said that Russian oil was not “some bedrock part of the Indian economy” and that New Delhi could reduce its dependence on Moscow’s energy exports without major economic disruption.
“This is something we believe they can do and should do, and frankly I can already see them starting to diversify. I think they get it,” Greer remarked, referring to India’s growing engagement with alternative suppliers. According to him, India’s increase in Russian oil imports after the 2022 Ukraine war was tactical, not structural.
What the US Message Really Means?
Greer clarified that President Donald Trump’s administration is not ordering India to change its foreign relations, but rather pushing to curb funding flows that sustain Moscow’s war in Ukraine. “Obviously they are a sovereign country. They are going to control their decisions,” he said, while reiterating that the White House remains focused on ending the Russia-Ukraine conflict.
“We’re not trying to dictate to other countries who they can have relations with and who they can’t,” Greer added. “But we are trying to make sure that Vladimir Putin feels as much pressure as possible.” His comments underline Washington’s balancing act, maintaining respect for Indian sovereignty while applying diplomatic pressure over Russian energy ties.
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Trade Tensions Easing, Talks in Final Stages
Greer highlighted that India remains “pragmatic” on trade matters and continues to actively engage with US negotiators. He recently met Commerce Minister Piyush Goyal in September on the sidelines of the UN General Assembly to address key issues, including high tariffs and market access disputes.
According to senior US officials, a comprehensive resolution could be announced in the coming weeks. Sergio Gor, widely expected to be the next US Ambassador to India, hinted that discussions have reached the “nitty gritty” stage. The two sides are reportedly close to finalising an agreement to ease the 50% tariff rate currently imposed on Indian exports — among the world’s highest.
The 50% Tariff Challenge
India continues to face heavy US tariffs impacting crucial export sectors such as:
- Textiles
- Gems and jewellery
- Shrimp and seafood
The 50% duty comprises a 25% reciprocal levy and an additional 25% penalty linked to India’s continued purchase of discounted Russian crude. With both sides indicating that they are prepared to find a compromise quickly, these tariffs have emerged as a major problem in US-India trade relations.
India’s $212 Billion Trade Relationship With the US
Bilateral trade in goods and services between the US and India reached $212.3 billion in 2024, as per data from the Office of the US Trade Representative. India continues to maintain a healthy trade surplus of around $40–45 billion, something the Trump administration has indicated it seeks to reduce through targeted trade reforms and reciprocal market access.
Officials describe the ongoing dialogue as “constructive,” with the US recognising India’s growing role as a strategic economic and political partner — not only in the Indo-Pacific but also in shaping global energy flows. Greer’s tone suggested a shift from confrontation to collaboration, built on mutual respect and economic realism.
Disclaimer: The information presented is based on verified news reports and reflects statements by official representatives.
