- Donald Trump imposed 50% tariffs on Indian goods, escalating trade tensions in 2025.
- India denies commitments to stop buying Russian oil despite Trump’s claims.
- Indian exports dropped from $8.8 billion to $5.5 billion between May and September 2025.
- Russia supplies 34% of India’s crude oil, with imports expected to rise by 20% in October 2025.
- US officials accuse India of profiting from discounted Russian crude amid the Ukraine war.
In 2025, former President Donald Trump announced 50% tariffs on Indian goods amid growing disputes over India’s continued imports of Russian crude oil. Trump claimed Indian Prime Minister Narendra Modi agreed to stop purchasing Russian oil during a conversation on Air Force One. However, India’s Ministry of External Affairs denied this exchange ever took place.
From May to September 2025, Indian exports to the US fell sharply from $8.8 billion to $5.5 billion. The tariffs were imposed in two phases: a “reciprocal tariff” on August 7 and an additional 25% levy on August 27, targeting India’s energy imports from Russia. These tariffs affected India’s crucial sectors like textiles, gems, jewelry, leather goods, and engineering products.
Trump stated, “I spoke with Prime Minister Modi of India, and he said he’s not going to be doing the Russian oil thing.” When questioned about India’s denial, he responded, “But if they want to say that, then they’ll just continue to pay massive tariffs, and they don’t want to do that.” India’s spokesperson, Randhir Jaiswal, noted the last call between Trump and Modi was on October 9. He said India is diversifying energy sources as needed but did not confirm halting Russian oil imports.
Russia remains India’s largest crude supplier, accounting for about 34% of imports. This share increased from 1.7% in 2019-2020 to 40% in fiscal 2023-24. Data from commodities firm Kpler shows India’s Russian oil imports are set to rise by 20% in October 2025 to 1.9 million barrels per day. US officials claim India has reduced these purchases by half, which Indian sources contest, citing no current drop in import levels.
US Treasury Secretary Bessent accused India of “profiteering” by buying discounted Russian crude, refining it, and reselling petroleum products. White House Trade Adviser Peter Navarro described India as an “oil money laundromat for the Kremlin.” Trump reiterated his stance during a recent meeting with Ukraine’s President Zelensky, saying, “Well, India is not going to be buying Russian oil anymore.”
With Indian refiners placing orders through November, any import changes may appear only in December or January data. The ongoing trade conflict highlights deep disagreements about energy imports, tariffs, and strategic ties within the BRICS countries. US tariffs on Indian goods remain in place pending shifts in India’s energy policies.
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