US-India Relations Strained Over Russian Oil Imports Amid Trade Tensions
Rising Tensions in US-India Relations
Amid global trade pressures and geopolitical challenges, the relationship between the United States and India has once again shown signs of strain. On Sunday, President Donald Trump explicitly warned that if India does not curb its crude oil purchases from Russia, the US may impose additional tariffs on India.
During a conversation with reporters aboard Air Force One, Trump referred to Prime Minister Narendra Modi as a 'good person' but acknowledged that he was aware of the US President's dissatisfaction with India's policies. Trump further indicated that the US is prepared to rapidly increase tariffs in trade matters. This statement comes at a time when negotiations for a trade agreement between the two nations have been ongoing for months without any concrete outcomes.
Notably, last year, the US raised tariffs on several products imported from India to 50%, with approximately 25% of these tariffs directly linked to oil purchases from Russia. Current reports suggest that the US is exerting pressure on India to limit Russia's energy revenue.
Trump's remarks have already impacted Indian markets. On Monday, IT stocks faced pressure, causing the Nifty IT index to drop nearly 2.5%, reaching its lowest point in a month. Investors are concerned that escalating trade tensions could further delay the India-US trade deal.
Meanwhile, Republican Senator Lindsey Graham, known to be close to Trump, stated that US sanctions on Russian oil companies and high tariffs on India have had an effect, leading India to reduce its purchases of Russian oil to some extent. He supported the idea of imposing tariffs as high as 500% on countries that continue to buy cheap oil from Russia.
However, trade experts hold a different view. Ajay Srivastava, founder of the Global Trade Research Initiative, pointed out that India is already facing a 50% tariff from the US and is in a strategic dilemma due to not completely halting Russian oil purchases. He emphasized that ambiguity is no longer viable, and India must clarify its policy.
It is important to note that while India has reduced its imports of Russian oil in recent months due to US pressure, it has not completely stopped these purchases. The government has also requested refiners to provide weekly reports on the purchase of Russian and American oil to address US concerns.
Despite the heavy tariffs, India's exports to the US increased in November. However, a decline of over 20% in total exports has been recorded from May to November 2025. Prime Minister Modi and President Trump have communicated at least three times since the imposition of tariffs, and last month, India's Commerce Secretary met with US trade officials. Nevertheless, the situation regarding the trade agreement between the two countries remains unclear, and pressure on this issue may intensify in the future.