US tariff waiver on Russia-linked oil purchases to boost India-US trade: Report

NEW DELHI: The United States' decision to waive Russia-linked tariff and sanctions measures on major buyers of Russian-origin oil and gas could provide significant relief to Indian exporters, restore business confidence and help accelerate bilateral trade, a new report has said.

The report from Times Kuwait said the Executive Order signed by President Donald Trump recently could boost bilateral trade momentum, support employment and advance the $500 billion India–US bilateral trade ambition by 2030.

The order eased the immediate threat of additional tariffs of up to 100 per cent on Indian exports linked to Russian energy purchases, reducing uncertainty for businesses.

Businesses gain more room to plan shipments, negotiate contracts, and make investment decisions with greater confidence.

Engineering goods and industrial machinery exports rely on long-term procurement relationships, competitive pricing and reliable delivery schedules.

US importers can assess Indian sourcing options without the same immediate concern, the report said, adding that businesses on both sides can focus more on expanding commercial opportunities rather than on responding to successive policy uncertainties.

"Although the waiver does not eliminate every tariff-related challenge, it reduces the risk of further escalation in trade tensions and provides an opportunity to rebuild momentum in one of India’s most important export markets," the report noted.

The United States remains India’s largest destination for merchandise exports, comprising manufacturing, pharmaceuticals, engineering, electronics and labour-intensive goods.

India’s merchandise exports to the US rose from about $86.5 billion in FY25 to $87.3 billion in FY26, up about 0.9 per cent despite tariff measures during the year.

Exports in September 2026 rose to $8.02 billion, up 48 per cent from $5.42 billion in September 2025.

“Greater coordination on energy, manufacturing, technology, investment and supply chains can help both countries identify shared interests and reduce the risk of future disruptions,” the report noted.