Senior US Presidential Counsellor Peter Navarro has stated that President Donald Trump and Prime Minister Narendra Modi share a very good working relationship and will resolve issues concerning the Russian-oil-related tariff matter.

His remarks came amid ongoing efforts by India and the United States to strengthen their multi-faceted partnership across strategic domains.

Navarro recalled that during the Ukraine-Russia war, he had written an op-ed in the Financial Times pointing out that prior to the Russian invasion of Ukraine, India was not engaged in the oil trade with Russia.

However, after the conflict began, India became heavily involved, selling refined products on behalf of Russia, which contributed to sustaining Moscow’s war effort. He noted that this issue has since been resolved, though his article had sparked strong reactions online from Indian audiences. He urged that such disagreements should not be handled through hostile exchanges, emphasising that problems in America are resolved differently.

Responding to a question from ANI, Navarro reiterated that the matter of tariffs would be worked out directly between President Trump and Prime Minister Modi. He stressed that it was not for him or any group to interfere in the bilateral discussions, underscoring the strength of the leaders’ personal rapport.

The comments followed the passage of the Lindsey O Graham Sanctioning Russia and Iran Act of 2026 in the US Senate on 7 August.

The bipartisan legislation, approved by an overwhelming 86-11 vote, authorises President Trump to impose tariffs of up to 100% on goods from countries such as India and China that continue importing Russian oil and gas.

The measure is designed to escalate economic pressure on Moscow and Tehran, targeting nations that maintain significant energy trade ties with Russia.

Under the provisions, the US president has discretionary authority to enforce tariffs on imports from the world’s top five buyers of Russian crude oil or natural gas. The legislation also introduces fresh sanctions against Russian President Vladimir Putin, senior political and military officials, financial institutions, energy developments and entities linked to Russia’s war effort.

It extends restrictions to older and reflagged oil tankers allegedly used by Russia to circumvent global sanctions and maintain export revenues. The broader objective is to curtail financial flows sustaining Russia’s economy and military campaign.

India remains one of the largest buyers of Russian crude globally, alongside China. The legislation effectively presents energy-importing nations with a choice between continuing to purchase discounted Russian energy or retaining access to the lucrative US market. This places India in a delicate position, balancing its energy security requirements with the risk of punitive tariffs on its exports to the United States.

India expanded its procurement of discounted Russian crude after the outbreak of the Russia-Ukraine conflict in 2022. The move was aimed at securing national energy needs during global market turmoil. 

Historically, Russia was not a primary supplier for India, but the availability of cheaper crude allowed Indian refiners to optimise raw material costs and ensure uninterrupted domestic supplies. This was particularly important amid transit disruptions in the Strait of Hormuz and volatility in global energy markets.

The issue of tariffs now forms a critical element in India-US relations, with both governments seeking to reconcile strategic cooperation with economic realities.

Navarro’s assurance that Trump and Modi will resolve the matter reflects confidence in the resilience of the bilateral partnership, even as new challenges emerge in the global energy landscape.

ANI