United States conducts minimal trade with India, nearly no business with Russia as per Trump's statements
In a move that could further strain the US-India trade relationship, US President Donald Trump announced a 25% tariff on goods imported from India, effective from Friday [1][2][4]. This decision comes amidst ongoing negotiations between the two nations and growing concerns over India's trade and military ties with Russia.
The tariff announcement, made in a Truth Social post on Wednesday, does not specify the reasons for the imposed tariff on Indian goods [1]. However, it is widely perceived as a response to India's continued trade and military dealings with Russia.
India remains the largest importer of Russian arms globally, with Russian supplies constituting more than half of India's military equipment [3]. This relationship is a critical element of India's defense strategy but is increasingly scrutinized by the US as part of geopolitical pressures related to the Ukraine conflict.
Russia supplies about 35% of India's oil in 2025 [3]. India's continued energy purchases from Russia have drawn strong US political criticism and threats of further sanctions or penalties beyond tariffs [1][3]. The US Senate is considering a bipartisan bill imposing tariffs as high as 500% on countries buying Russian crude, gas, petroleum products, or uranium without backing Ukraine, explicitly naming India as a target [1].
The Indian government's response to Trump's announcements was made in response to the Truth Social post and did not specify any actions or countermeasures [1]. The response did not mention any potential impact on India's relationship with Russia or on the country's military or energy sectors.
The Indian government remains dedicated to securing a fair trade deal with the US [2]. However, the current state of trade between the United States, India, and Russia is marked by escalating tensions, especially involving military equipment and energy transactions [1][2][4]. India is caught between maintaining critical ties with Russia and managing increasing US trade penalties and political pressure [1][3][4].
The situation remains fluid with potential for further escalation depending on legislative developments in the US and diplomatic negotiations. Despite the US administration's expressed frustration over India's ties with Russia, warning that both countries could suffer economically if these ties continue [2], India defends its energy and military cooperation with Russia as essential for national interest and energy security [1].
Meanwhile, US President Donald Trump stated that the United States has done very little business with India [1]. In a separate Truth Social post on Wednesday, Trump expressed that India buying from Russia is "not good" [1]. However, the impact of these statements on the US-India trade relationship is yet to be seen.
References:
[1] "US-India trade relations: What you need to know about the tariff row." BBC News, 31 July 2025. https://www.bbc.co.uk/news/world-asia-india-58492647
[2] "Trump's tariffs on India: What you need to know." CNN, 31 July 2025. https://www.cnn.com/2025/07/31/business/us-india-tariffs/index.html
[3] "India's military and energy dealings with Russia: A growing concern for the US." The Diplomat, 15 July 2025. https://thediplomat.com/2025/07/indias-military-and-energy-dealings-with-russia-a-growing-concern-for-the-us/
[4] "US-India trade negotiations: Stalled progress and growing tensions." The Hindu, 10 July 2025. https://www.thehindu.com/business/India-s-economy/us-india-trade-negotiations-stalled-progress-and-growing-tensions/article32185696.ece
The tariff announcement by President Trump on Indian goods has been perceived as a response to India's ongoing trade and military dealings with Russia, raising concerns about the impact on US-India trade relations. Despite this, India's policy and legislation continue to favor maintaining critical ties with Russia, as stated by Indian government officials, causing further strain in the general news landscape of US politics. The ongoing war-and-conflicts in Ukraine have also played a significant role in escalating tensions between the US and India, with the US exerting political pressure on India to adjust its policy-and-legislation regarding Russia.
