The US, represented by White House Economic Advisor Kevin Hassett, has expressed disappointment with India’s continued imports of Russian crude oil, viewing it as funding Russia’s war in Ukraine. 

Despite this, the US hopes for positive developments in bilateral relations. President Donald Trump himself criticised India's oil imports from Russia and their growing closeness with Russia and China, declaring on social media that the US has "lost" India and Russia to "deepest, darkest China," though Hassett expressed hope for improvements.

The US has imposed steep tariffs totalling 50% on Indian goods, including a 25% penalty for India’s purchase of Russian oil, effective from late August 2025. India has strongly rejected these tariffs as "unjustified and unreasonable," citing that European countries also continue to buy significant quantities of Russian energy, including gas and LNG.

India argued that it is being unfairly singled out while EU-Russia trade in goods and services is substantially higher. Indian refiners have continued to increase their purchases of discounted Russian crude despite the tariffs, leveraging lower prices as Russian producers seek new buyers due to Western sanctions.

Additionally, the US is preparing semiconductor tariff proposals with possible exemptions for US-investing companies. Hassett characterised the recent US jobs report as disappointing but was optimistic about future economic growth due to strong capital spending and tax reforms.

The tensions have impacted trade relations, with the MEA affirming ongoing engagement with the US side on trade issues but standing firm on safeguarding India’s national interests and economic security.

The US trade team and President Trump are disappointed by India’s Russian oil imports, which they perceive as supporting Russia’s Ukraine war effort.

The US has imposed heavy tariffs on Indian goods in response. India rejects US criticism, pointing to double standards in Western energy imports and continues to import discounted Russian crude. Both sides express a hope for diplomatic resolution amid these strained ties.

Based On ANI Report