Amid Donald Trump’s ‘Penalty’ For Business With Russia, US-Moscow Trade Ties Explained

Last Updated:August 01, 2025, 19:10 IST

According to the U.S. Census Bureau, between January and May 2025, U.S. exports to Russia totalled approximately $231.7 million, while imports from Russia reached $2.091 billion

Despite sanctions, the U.S. continues to import some strategic materials from Russia. (AP File)

United States (US) President Donald Trump on Thursday announced a 25 per cent tariff on Indian goods plus a ‘penalty’ for India buying crude oil from Russia.

But how much trade does the US do with Russia?

What did the US say about India-Russia trade ties?

Russia over the years has been selling crude oil to India at a discount – which has resulted in New Delhi saving billions. Secretary of State Marco Rubio slammed India, saying that New Delhi buying oil from Moscow was funding its Ukraine war.

Rubio’s remarks came after Trump earlier took to social media to slam India and Russia, saying they “can take their dead economies down together". “I don’t care what India does with Russia. They can take their dead economies down together, for all I care. We have done very little business with India, their tariffs are too high, among the highest in the world. Likewise, Russia and the USA do almost no business together. Let’s keep it that way," Trump wrote on his Truth Social platform.

Trump added that India has “always bought a vast majority of their military equipment from Russia". They “are Russia’s largest buyer of energy, along with China, at a time when everyone wants Russia to stop the killing in Ukraine", he added.

How much trade does US do with Russia?

On the decline…

In 2024, the total value of U.S.–Russia goods trade was estimated at $3.5 billion, according to the Office of the United States Trade Representative (USTR). This marked a significant decline from 2023, largely due to heightened sanctions and ongoing geopolitical tensions. U.S. goods exports to Russia fell by 12.3%, totaling $526.1 million, a decrease of approximately $73.5 million compared to the previous year. U.S. imports from Russia dropped even more sharply—down 34.2% to $3.0 billion, a fall of around $1.6 billion. As a result, the U.S. trade deficit with Russia decreased by 37.5%, amounting to $2.5 billion, which was $1.5 billion less than the deficit in 2023.

The decline in U.S.–Russia trade has been consistent since Russia’s 2022 invasion of Ukraine. In 2023, the U.S. exported around $599 million worth of goods to Russia and imported $4.57 billion, resulting in a $3.97 billion trade deficit. In 2024, this deficit narrowed significantly due to falling imports. Data from the U.S. Census Bureau also shows that by the first five months of 2025, total U.S. imports from Russia were down to $2.1 billion, while exports stood at $232 million.

On a sectoral level, U.S. exports to Russia in 2024 were minimal and highly fragmented. The top categories included printed books, live animals, fruits and nuts, aircraft parts, ceramic goods, and dairy products. Most of these were valued under $200,000 per category, reflecting the impact of sanctions and export restrictions. U.S. companies are largely unable to engage in significant trade with Russia in areas such as high-tech, energy, defense-related goods, and dual-use technologies.

But not fully shut…

However, despite sanctions, the U.S. continues to import some strategic materials from Russia. These include enriched uranium (valued at about $596 million in early 2025) and palladium (around $502 million), both of which are essential for nuclear power and catalytic converters, respectively. These items are exempt from full sanctions due to a lack of alternative global suppliers and national security considerations.

US-Russia numbers at a glance

According to the United States Trade Representative, U.S. total goods trade with Russia were an estimated $3.5 billion in 2024.

U.S. goods exports to Russia in 2024 were $526.1 million, down 12.3 percent ($73.5 million) from 2023.U.S. goods imports from Russia totalled $3.0 billion in 2024, down 34.2 percent ($1.6 billion) from 2023.The U.S. goods trade deficit with Russia was $2.5 billion in 2024, a 37.5 percent decrease ($1.5 billion) over 2023.In 2022, the US imported goods worth $15 billion from Russia. As of May 2025, the US’ imports from Russia were at $2.1 billion. This included imports of $196 million in January, $339 million in February, $523 million in March, $492 million in April, and $539 million in May. The US imported fertilisers, precious metals, inorganic chemicals, wood products, and some machinery from Russia.

US-Russia trade in 2025

According to the U.S. Census Bureau, between January and May 2025, U.S. exports to Russia totalled approximately $231.7 million, while imports from Russia reached $2.091 billion, resulting in a goods trade deficit of $1.859 billion during the period. These figures represent monthly trade such as January’s $34.9 million exports against $196.2 million imports, and May’s roughly $51.4 million exports versus $539.6 million imports.

What India said

“India and the US have been engaged in negotiations on concluding a fair, balanced and mutually beneficial bilateral trade agreement over the last few months. We remain committed to that objective. The Government attaches the utmost importance to protecting and promoting the welfare of our farmers, entrepreneurs, and MSMEs," the Ministry of Commerce and Industry said in a statement. “The Government will take all steps necessary to secure our national interest, as has been the case with other trade agreements including the latest Comprehensive Economic and Trade Agreement with the UK," the government said.

With inputs from agencies

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