US President Donald Trump has said that it was not an easy decision to impose tariffs (tax) due to buying Russian oil on India. He said that this caused a strain in the relationship between the two countries.

In an interview to Fox News, Trump said, “India was the biggest customer in Russia. I imposed 50% tariff on India, because they were buying oil from Russia. It was a big step and this increased differences with India.” Trump also said that Russia’s issue is more in Europe, less of America. He claimed that during his tenure he resolved many major controversies, including the issue of Pakistan-India.

India defended the purchase of oil from Russia

On the other hand, India has defended the purchase of Russian oil. India says that the purchase of energy depends on its national interest and market status.

Pressure from America

Sergio Gore, a nominated candidate for the post of Ambassador in India of Trump administration, said that the US wants India to buy American oil and petroleum products. He says that India’s more than 140 million population and fast growing middle class is a big market for America.

What did the American Commerce Secretary say?

Talking to CNBC, American Commerce Secretary Howard Lutnik also indicated that if India stops buying Russian oil, then the trade agreement between the two countries may open.

Effect on India-US relations

In the last few months, there has been a lot of ups and downs in the relations between India and America, where India’s buying oil from Russia has caused the main dispute. The Modi government has said its side on this, saying that taking oil from Russia is completely in the national interest, because it gives cheaper fuel and ensures the energy security of the people. Meanwhile, in August, the US imposed 25% additional tariffs on some Indian products, which increased the total fee to 50%. Which is the highest among all the business partners of America.

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Expressing displeasure over buying oil from Russia, the US has also imposed 25 percent of additional tariffs on Indian products. 25 tariffs are already applicable, so products from India to America will have to face a huge tariff of 50 percent from Wednesday. Amidst all this, the US Finance Minister hopes that India and America will definitely come together one day.

US Finance Minister Scott Besant, however, hoped that Indo-US relations would remain strong. He said that India is the largest democracy in the world and America is the largest economy. In the end we will come together.

Talks stuck on trade agreement
Besant clearly said that the trade agreement has not been reached yet. He alleged that India’s attitude has been “performing” so far. He said that India started talks soon after Independence Day. It was expected that the agreement would be reached by May or June. But India took very cautious and measuring steps. Besant also said that India has earned profits from Russian oil and this is a big reason for the dispute.

Statements on Trump-Modi’s relationship
Besant admitted that the relationship between the two countries is complicated. He said that there are very good relationship between President Trump and Prime Minister Modi at a high level, but the matter is not just about Russian oil. Besant further said that America has a huge trade deficit with India. He explained that when there is a conflict in business, the country with losses (America) is in profit. A country with surplus (India) should worry. India may be selling things to America but its own tariffs are very high.

What did Besant say on the rupee and dollar?
When asked whether the trade in the rupee by India is a matter of concern, he replied that the Indian rupee is at the lowest level against the dollar at this time. I worry about many things, but the rupee will be a reserve currency, it is not among them.

India’s answer and PM Modi’s attitude
New Delhi has made it clear that it will not bow down to American pressure. Prime Minister Narendra Modi said that he will never compromise on the interests of farmers. According to a report by German newspaper Frankfurter Algemine Siteung (FAZ), PM Modi did not pick up four phone calls of President Donald Trump in recent weeks. The report said that this is a sign of both his anger and vigilance.

US President Donald Trump last week announced additional punitive action on imposing 25 per cent high tariffs on India and doing business with Russia, causing a stir all over the world. He also said that I do not care what India does with Russia. They can further drop their dead economy. The reaction of Canadian Business Tycoon Kirk Lubimov has come about Trump’s statement.

Testband company chairman Kirk Lubimov, while criticizing Turmp’s strategy on Twitter, wrote, ‘Trump is now taking the fastest growing economy in the world to fight with India. This is a big geopolitical mistake. Lubimov believes that the importance of India is not only economic, but also to balance China’s influence in the supply chain. He suggested Trump that he should cooperate with Canada and India instead of controlling India with nail-hills so that global resources can be balanced.

I’ve said it before, and i’ll say it again;

The biggest problem with Donald Trump’s Tariff approach is that it has zero consider to geopolitical strategy.

Trump is now picking a fight with India, one of the fastest growing economies in the world with prime minister, modi, modi,… pic.twitter.com/a0i7jnom6w

– kirk lubimov (@kirklubimov) August 2, 2025

Trump described India as a dead economy

Trump not only described India as a dead economy, but also severely criticized India’s high tariff policies. He alleged that India imposes the world’s highest tariff on American goods. America’s trade with India is limited due to tariffs and restrictions. India’s trade with Russia weakens the US ban policy. This stance came at a time when India has become the second largest buyer of crude oil from Russia. Earlier this part was less than 1%, which has now exceeded 35%.

India’s response- we grow fast economy

The Government of India immediately responded to this statement based on diplomatic and facts. Commerce and Industry Minister Piyush Goyal said in Parliament that India is now the fastest growing major economy in the world and is soon to become the third largest economy in the world. According to Goyal, India’s contribution to Global GDP is around 16%. The flexible economic policies and structural reforms of the country have made India a global growth engine.

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