Amid ongoing trade negotiations, President Donald Trump has affirmed the strong ties between the United States and India, expressing his close relationship with Prime Minister Narendra Modi. Trump, speaking at a press conference with UK Prime Minister Keir Starmer, mentioned a recent phone call where he wished Modi a happy birthday, emphasizing the "very good relationship" between the two nations. Modi reciprocated the sentiment, acknowledging Trump as a "friend" and expressing commitment to elevating the Comprehensive Global Strategic Partnership between India and the U.S..
Despite this positive rhetoric, Trump has defended his administration's tariffs on India due to the country's continued imports of Russian oil. He has placed a 50% tariff on Indian goods. Trump has also called on NATO countries to cease purchasing Russian oil, suggesting that this, along with tariffs on China, would help end the Russia-Ukraine war.
India has significantly increased its Russian oil imports since the start of the war in Ukraine, with Russia becoming its largest source of crude oil, accounting for over a third of India's oil imports. In August 2025, India's crude oil imports from Russia nearly matched China's, reaching €2.9 billion. This increase is attributed to discounted prices offered by Russia after Western nations began shunning Moscow's oil following the invasion of Ukraine. The U.S. had initially encouraged India to increase Russian oil imports to stabilize global energy markets.
However, the Trump administration now views India's reliance on Russian crude as a leverage to pressure the Kremlin to end the war in Ukraine, as oil exports are Moscow's biggest revenue source. Despite U.S. pressure and tariffs, India has shown no signs of reducing its Russian oil imports, maintaining that its import decisions are based on price, grade of crude, logistics, and other economic factors. India has also defended its actions by pointing out that other nations, including China and EU members, continue to import significant amounts of Russian energy.
Some reports suggest that India's continued purchase of Russian oil is benefiting some of the country's wealthiest families. Notably, Reliance Industries, led by Mukesh Ambani, has been identified as the biggest importer of Russian seaborne crude oil in India.
The U.S. is pressuring India to reduce its Russian oil imports, with some officials arguing that these purchases are funding Moscow's war efforts. However, India's Foreign Ministry has countered that it is being unfairly singled out while the U.S. and EU continue to trade with Russia.
