Donald Trump News: Tensions in bilateral trade relations between the US and India have reached a boiling point. US President Donald Trump has imposed additional tariffs of up to 50 percent on India for purchasing cheap crude oil from Russia, which is not only hurting Indian exporters but also complicating ongoing trade negotiations between the two countries. Meanwhile, US Commerce Secretary Howard Lutnick has targeted major trading partners like India, Brazil, and Switzerland, saying that these countries must "react correctly" to the US. He stressed that these countries must open their markets to suit US interests, otherwise America's dominance as a global consumer market will force them to comply.
US Displeasure Over Russian Oil Purchases: "Misplaced and Ridiculous"
Since the Ukraine war, India has increased its purchases of cheap crude oil from Russia, which now accounts for approximately 42 percent of its total oil imports. The US believes that these purchases are indirectly funding Russia's war machine. The White House has called this "unfair profiteering," while India says it is necessary to stabilize the global energy market.
The Trump administration issued an executive order in August 2025, doubling the original 25 percent tariff on most goods imported from India to 50 percent. This includes key sectors such as textiles, gems and jewelry, footwear, furniture, and chemicals, which account for 55 percent of US exports to India. According to the Global Trade Research Initiative (GTRI), this could lead to a 40-50 percent decline in US exports to India, affecting millions of jobs.
In an interview with News Nation, Lutnick called India's policy "completely wrong and ridiculous." He said, "India must decide whose side it is on." This statement came at a time when US officials warned India that progress on the trade deal would be stalled if it did not stop purchasing Russian oil. White House trade advisor Peter Navarro even called it "Modi's war," alleging that India was colluding with Russia and China to harm US interests.
Lutnick's statement: "These countries have to fix things"
US Commerce Secretary Lutnick took aim at India, saying, "We have many countries that have to fix things—like Switzerland, Brazil, and India. These countries must respond appropriately to the US. They must open their markets and stop actions that harm the US." Citing Switzerland as an example, he said that even this "small, rich country" is running a $40 billion trade surplus with the US, which is unacceptable.
Lutnick, citing the US's $30 trillion economy as the world's largest consumer market, warned, "We are the world's consumers. People have to remember, our economy is the world's consumer. So they have to go back to the customer, because we all know that in the end, the customer is always right." This comment came in the context of 50 percent tariffs on India and Brazil, where Brazil is also facing similar pressure.
Trade Talks: "India Will Return in a Month or Two"
Just a few weeks ago, Lutnick described India's "resistance" in trade talks as symbolic. He predicted that India would return to the negotiating table within a month or two, as Indian companies would exert pressure on Prime Minister Narendra Modi's government. In September 2025, an Indian delegation led by Commerce Minister Piyush Goyal visited Washington, where the two sides discussed the outlines of a mutually beneficial trade agreement.
However, the US side clearly stated that stopping Russian oil purchases was the key to reducing tariffs and finalizing a deal. India responded by accusing the US and the EU of double standards, as Europe continues to purchase gas from Russia. External Affairs Minister S. Jaishankar called this "unreasonable and imprudent."
India's stance: "National interest paramount"
The Indian government called the tariffs "shocking" and stated that it would take all necessary steps to protect national interests. Prime Minister Modi, while promoting "Make in India," said, "Pressure may increase, but we will endure." Experts believe this conflict highlights the conflict between India's energy security and America's geopolitical strategy. According to Goldman Sachs, if the 50 percent tariffs remain in place, India's GDP growth will fall below 6.5 percent.
This stance by the Trump administration is a signal not only for India but also for the global trade system. Will India reduce its dependence on Russian oil or give the US a "proper response"? The coming months will determine whether this tension will transform into a stronger trade partnership or deepen further.