Monday, October 20, 2025

India Russia Oil Trade: Trump’s Shocking Claims and Tariff Threats

US President Donald Trump seems to be on loop over his big assertion that India won't be doing oil trade with Russia anymore. On Monday, the Republican repeated the claim again, reiterating that Prime Minister Narendra Modi had told him that he "is not going to be doing the Russian oil thing".

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Washington D.C. – US President Donald Trump has made his third assertion in five days regarding the India Russia oil trade, claiming that Prime Minister Narendra Modi assured him that India would cease purchasing oil from Russia. Speaking to reporters aboard Air Force One on Monday, Trump reiterated his controversial statement that has sparked diplomatic tensions between the two nations.

“I spoke with Prime Minister Modi of India, and he said he’s not going to be doing the Russian oil thing,” Trump stated, maintaining his position despite India’s official denial of such a conversation. This repeated claim comes at a critical juncture in US-India relations, as both countries engage in ongoing trade negotiations.

India’s Denial and Trump’s Tariff Warning

India Russia oil trade

When confronted with India’s denial of any phone call between Trump and Modi regarding the India Russia oil trade, the US President issued a stern warning. “But if they want to say that, then they’ll just continue to pay massive tariffs, and they don’t want to do that,” Trump responded, making it clear that economic consequences could follow India’s contradictory stance.

Trump’s latest remarks coincide with delicate trade negotiations between India and the US, occurring against the backdrop of his administration’s 50% tariffs on Indian imports. These substantial duties include 25% penalties implemented in August specifically targeting India’s continued engagement in the India Russia oil trade.

The Tariff Context Behind Oil Trade Dispute

India Russia oil trade

The punitive tariffs imposed by the Trump administration represent a calculated strategy to pressure India over its energy relationships. Trump announced these additional penalties as a direct response to India’s decision to maintain its India Russia oil trade despite Western pressure to isolate Moscow economically following its invasion of Ukraine.

The move is widely interpreted as an attempt to leverage economic pressure on Russia through its trading partners. Several Trump administration officials have previously claimed that India profited substantially from reselling Russian oil during and after the war, alleging that the India Russia oil trade witnessed a significant increase following Russia’s military actions in Ukraine.

Trump’s Claims About Modi’s Assurance

Last week, Trump’s initial assertion about the India Russia oil trade drew international attention when he publicly stated that energy commerce would soon cease. “I was not happy that India was buying oil. And he (Modi) assured me today that they will not be buying oil from Russia. That’s a big step,” Trump declared, suggesting a major diplomatic breakthrough.

Also Read: Trump China Tariff Talks: Powerful Move Prompts Beijing to Agree to New Negotiations

Elaborating on the timeline, Trump indicated that changes to the India Russia oil trade wouldn’t occur immediately but would happen “within a short period of time,” acknowledging it was “a little bit of a process.” He repeated this claim during his bilateral lunch with Ukraine’s President Volodymyr Zelensky, stating, “Well, India is not going to be buying Russian oil anymore.”

Ministry of External Affairs Issues Clarification

India Russia oil trade

Hours after Trump’s initial claims about the India Russia oil trade, India’s Ministry of External Affairs issued an official statement clarifying the nation’s position on energy sourcing. The statement made no mention of any conversation with Trump regarding the India Russia oil trade, instead focusing on India’s sovereign energy policies.

“India is a significant importer of oil and gas. It has been our consistent priority to safeguard the interests of the Indian consumer in a volatile energy scenario. Our import policies are guided entirely by this objective,” the Ministry stated, emphasizing that decisions about the India Russia oil trade are based purely on national interests and consumer welfare.

Implications for US-India Trade Relations

The controversy surrounding Trump’s claims about the India Russia oil trade has created additional complexity in already tense trade negotiations. With 50% tariffs looming over Indian imports, the economic stakes are substantial for both nations. India faces pressure to balance its energy security needs with maintaining its strategic partnership with the United States.

The dispute highlights the broader geopolitical tensions arising from Russia’s war in Ukraine and Western efforts to economically isolate Moscow. India has consistently maintained that its approach to the India Russia oil trade is driven by practical considerations of energy security and consumer affordability rather than political alignment.

The Road Ahead for Energy Diplomacy

As negotiations continue, the future of the India Russia oil trade remains uncertain. Trump’s repeated assertions, coupled with his tariff threats, signal that the issue will remain a contentious point in US-India relations. However, India’s firm denial of any agreement to end the India Russia oil trade suggests that New Delhi is unwilling to compromise its energy sovereignty under external pressure.

The coming weeks will prove critical in determining whether diplomatic channels can resolve this standoff or if economic tensions will escalate further, potentially impacting the broader strategic partnership between the world’s largest democracies.

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