US Commerce Secretary Howard Lutnick has stated that Washington is ready to conclude a trade deal with India only if New Delhi halts purchases of Russian oil. Speaking on 11 September 2025, Lutnick stressed that trade relations with India are his top priority and made it clear that any agreement depends on India ending its energy ties with Moscow. “We’ll sort it out with India,” he said, clarifying that a deal can only move forward once Russian crude is no longer part of India’s imports. This was reported by The WP Times, citing Reuters.
Lutnick also announced that the United States is preparing a “major deal” with Taiwan and a trade agreement with Switzerland. He underlined that a pact with South Korea has already been signed, but Washington will carefully watch whether Seoul fulfils all its formal obligations under the agreement. These statements reflect a broader US strategy of linking trade policy with geopolitical alignment, particularly in the context of global energy markets and Russia’s war against Ukraine.
The pressure on India intensified after President Donald Trump introduced 50% tariffs on Indian imports in August. According to the US president, India’s continued large-scale purchases of Russian oil amount to indirect financing of Russia’s military machine. On 10 September Trump revealed that Washington and New Delhi had already agreed to begin negotiations on a potential trade deal. He added that direct talks with Indian Prime Minister Narendra Modi are planned for the coming weeks, underscoring that the oil issue will remain at the centre of discussions.
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