US tariff threat on India eases after Trump pauses Russian sanctions

President Donald Trump's decision to pause Russian sanction legislation has eased tariff threats against India, which imports over 88% of its crude oil needs and relies on Russia as its largest supplier. India imported 1.9 million barrels per day of Russian crude in September, over 35% of total imports. The waiver follows a US-Russia diesel agreement on October 9, making penalties on other buyers hard to defend, according to think-tank founder Ajay Srivastava. India's Russian oil purchases surged after Moscow offered discounts following its February 2022 invasion of Ukraine, displacing traditional West Asian suppliers. The eased threat improves prospects for a US-India trade deal, with both countries agreeing on Section 301 overcapacity investigations. Rising fuel prices, driven by diesel costs averaging $6.18 per gallon in the US, have contributed to global inflation, with India's retail inflation reaching 5.54% in September.