NEW DELHI — Trade talks between the United States and India are moving forward despite a rocky backdrop, as President Donald Trump’s recent threats to impose penalties over India’s purchases of Russian crude oil have strained relations, according to Bloomberg on August 23, 2025. On Saturday, India’s External Affairs Minister Subrahmanyam Jaishankar emphasized that negotiations remain active, stating, “Negotiations are still going on,” at a New Delhi press event, signaling both nations’ intent to resolve the deadlock.
The tensions stem from Trump’s July 31 executive order imposing a 25% tariff on Indian imports, followed by an additional 25% penalty announced August 6, citing India’s $52 billion in Russian oil imports in 2024, per Reuters. India, the world’s third-largest oil consumer, relies on Russia for 35% of its crude, up from 1.7% in 2020, according to an SBI report. Trump accused India of fueling Russia’s war in Ukraine, claiming, “They’re buying Russian oil, they’re fueling the war machine,” in a CNBC interview, per CNBC.
Key points in the dispute include:
- Economic Impact: Tariffs could slow India’s GDP growth by 0.3%, per Moody’s.
- India’s Defense: New Delhi says it stabilized global oil prices, a move once encouraged by the U.S.
- Negotiation Hurdles: India resists opening its dairy and agriculture markets.
Posts on X, like those from @Reuters show mixed sentiment, with some praising India’s defiance and others urging compliance. Despite a canceled U.S. trade visit to New Delhi, Jaishankar’s comments suggest a window for diplomacy before the 50% tariffs take effect in late August. India’s push to diversify oil sources, including a 51% rise in U.S. crude imports in 2025, per ANI, underscores efforts to balance energy needs and U.S. relations.
Source: Bloomber
