The U.S.-India trade relations in 2025 have become significantly strained, largely due to disagreements over India's continuing imports of Russian crude oil and trade barriers imposed by both sides.

The Trump administration, led by White House Trade Advisor Peter Navarro, has levelled strong criticisms against India, accusing it of "unfair trade," protectionism with "sky-high tariffs," and "profiteering" from discounted Russian oil imports that allegedly fuel Russia's war machinery in Ukraine.

Navarro expressed that while the U.S. does not need unfair trade with India, India is "desperately" seeking access to U.S. markets, schools, and intends to take American jobs. He repeatedly asserted that Indian tariffs hurt U.S. employment and that revenues from Russian oil sales benefit Putin’s war efforts.

In response, India has rejected these allegations as inaccurate and misleading, emphasising the importance of mutual understanding and respect in the bilateral relationship. Indian officials highlighted that their energy policy and supply sources are grounded in strategic autonomy and the country's economic interests.

Despite heavy U.S. tariffs doubling to 50% on Indian goods—including a 25% additional tariff targeting Indian purchases of Russian crude—India has maintained its stance, continuing Russian oil imports due to significant economic incentives and energy security considerations. Russian crude remains heavily discounted compared to other suppliers, generating substantial financial savings for Indian refiners.

The ongoing tariff and trade tensions mark a major downturn after years of growing strategic partnership between the world's two largest democracies, with experts cautioning about complications to defence cooperation and regional initiatives such as the Quad.

President Trump meanwhile conveyed optimism on social media about resolving trade barriers, indicating ongoing talks and planned communication with Prime Minister Narendra Modi aimed at a successful trade agreement conclusion.

The conflict over tariffs and Russian oil imports has also generated reciprocal U.S.-India economic impacts, with U.S. imports from India declining and Indian refiners selectively increasing U.S. crude purchases.

However, the Trump administration's aggressive tariff measures and Navarro's confrontational rhetoric reveal deep friction rooted in geopolitical as well as trade issues, underscoring a complex balancing act between competition, cooperation, and conflicting national interests in U.S.-India relations as of late 2025.

Based On PTI Report