US-India Trade Tensions Over Russian Oil

a { color: #880000 !important; background: #ffeeee !important; } Latest News from NourishThe Nourish Mission (formerly OneSub)Get answers to today's big questionsUS-India Trade Tensions Over Russian OilForeign Affairs > International RelationsAs of late October 2025, US-India trade talks remain stalled amid tensions over India's discounted Russian crude imports. President Trump claims Prime Minister Modi assured him India will soon halt these purchases, but India has not formally confirmed this. The US maintains 50% tariffs on Indian goods, complicating efforts to finalize a trade deal before India's November state elections.

What's happened

As of late October 2025, US-India trade talks remain stalled amid tensions over India's discounted Russian crude imports. President Trump claims Prime Minister Modi assured him India will soon halt these purchases, but India has not formally confirmed this. The US maintains 50% tariffs on Indian goods, complicating efforts to finalize a trade deal before India's November state elections.

What's behind the headline?

US-India Trade and Energy Dispute: A Complex Balancing Act

Trade negotiations are deeply entangled with geopolitical energy concerns. The US uses tariffs as leverage to pressure India to reduce Russian oil imports, linking trade policy with foreign policy objectives.
India's energy security needs clash with US demands. India relies heavily on affordable Russian crude to meet its vast energy demands, making an immediate halt impractical and politically sensitive.
Domestic politics in India shape diplomatic decisions. Modi's absence from the ASEAN summit and focus on the Bihar state elections reflect caution to avoid political backlash over trade concessions.
Trump's public claims complicate diplomacy. His repeated assertions of personal mediation in the India-Pakistan ceasefire and promises from Modi on Russian oil imports have angered Indian officials and strained relations.
US strategy shows selective pressure. While India faces steep tariffs for Russian oil imports, China—the largest buyer—has not faced similar punitive measures, highlighting a nuanced US approach influenced by broader trade tensions.
Outlook: The trade deal's finalization hinges on India's political calendar and its ability to balance energy needs with US demands. Tariffs and diplomatic friction will likely persist until a mutually acceptable compromise is reached, possibly after India's elections.

This story underscores how trade, energy security, and geopolitics are inseparably linked in US-India relations, with domestic politics playing a decisive role in shaping outcomes.

What the papers say

The South China Morning Post reports that Trump repeatedly claims credit for mediating the May ceasefire between India and Pakistan, a claim rejected by Indian officials, adding strain to US-India relations amid stalled trade talks. The Japan Times highlights India's apprehension about Trump's public statements and the ongoing 50% tariffs on Indian exports, half linked to Russian oil purchases. Bloomberg notes that while Trump asserts Modi promised to halt Russian oil imports, Indian refiners and officials have not confirmed such a commitment, with some executives caught off guard by Trump's remarks. The Independent and Al Jazeera emphasize the US's frustration over India's discounted Russian oil purchases, which Washington says fund Russia's war in Ukraine, leading to punitive tariffs. Indian officials stress energy security and consumer interests, with no definitive decision on ending Russian oil imports. The Moscow Times and South China Morning Post detail ongoing trade negotiations, with India seeking tariff reductions and increased US energy imports, but cautious about announcements before India's November state elections. These sources collectively reveal a complex interplay of trade, energy, and diplomacy, with contrasting narratives on commitments and political sensitivities shaping the evolving US-India relationship.

How we got here

Tensions escalated after Trump imposed 50% tariffs on Indian exports in August, partly due to India's continued purchases of discounted Russian oil, which the US says funds Russia's war in Ukraine. Trump claims Modi promised to stop these imports, but India has neither confirmed nor denied this. Trade talks have been ongoing but remain unresolved amid political sensitivities in India.

Go deeper

Why has India not confirmed Trump's claim about halting Russian oil imports?
How do US tariffs affect India's economy and trade relations?
What role do India's domestic elections play in trade negotiations?

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