The United States, through White House Economic Advisor Kevin Hassett, has voiced dissatisfaction about India’s ongoing purchases of Russian crude oil, which it believes is being used to finance Russia’s conflict in Ukraine.
In spite of this, the United States believes that bilateral relations will improve. The US has “lost” India and Russia to “deepest, darkest China,” according to President Donald Trump, who also criticized India’s oil imports from Russia and its increasing ties with China and Russia on social media. Hassett, however, voiced optimism for changes.
With effect from late August 2025, the US has slapped hefty tariffs of 50% on Indian imports, which include a 25% penalty for India’s purchase of Russian oil. India has vehemently opposed these tariffs, calling them “unjustified and unreasonable,” pointing out that European nations still purchase large amounts of Russian energy, such as LNG and gas.
India claimed that because EU-Russia trade in products and services is significantly higher, it is being unfairly singled out. Despite the levies, Indian refiners have kept up their purchases of cheaper Russian oil, taking advantage of reduced pricing as Russian producers look for new customers as a result of Western sanctions.
Furthermore, suggestions for semiconductor tariffs with potential exemptions for US-investing firms are being prepared by the US. Although Hassett described the most recent US jobs report as disappointing, he remained hopeful about future economic growth because of tax reductions and significant capital spending.
Trade relations have been affected by the tensions; the MEA has affirmed continued engagement with the US side on trade matters while maintaining its commitment to defending India’s economic security and national interests.
President Trump and the US trade team are dissatisfied with India’s imports of Russian oil because they believe that they are aiding Russia’s war effort in Ukraine.
In retaliation, the US has placed high taxes on Indian imports. India continues to acquire discounted Russian crude and denies US charges that it is imposing double standards on energy imports from the West. Despite these tense relations, both parties profess hope for a diplomatic solution.