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India-US spat over trade and oil threatens wider fallout

August 07, 2025 2 min read
author Anamika Mishra, Sub Editor
India-U.S. spat over trade and oil threatens wider fallout in international trade supply chain. U.S. President Donald Trump’s recent criticism of India over trade and its continued oil imports from Russia is raising concerns among analysts and officials, who warn that it could unravel nearly 20 years of diplomatic progress between the two countries. India’s opposition parties and many citizens are pressuring Prime Minister Narendra Modi to respond firmly to what they view as aggressive tactics. On Wednesday, Trump signed an executive order imposing an additional 25% tariff on Indian imports on top of the existing 25% citing India’s significant oil purchases from Russia.  While India has become a key U.S. partner in countering China’s growing influence, its large trade surplus with the U.S. and strong ties with Russia have made it a focal point of Trump’s broader tariff campaign. Trump’s remark that India could buy oil from

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