U.S. President Donald Trump has acknowledged that his decision to impose a 50% tariff on Indian exports, as a penalty for purchasing Russian oil, has significantly strained relations with India, one of America’s key strategic partners. Speaking on Fox News’ “Fox & Friends,” Trump admitted, “That’s a big deal. And it causes a rift with India,” highlighting the diplomatic fallout from his trade war targeting New Delhi’s energy ties with Moscow.
The tariffs, which escalated from 25% to 50% on August 27, were introduced to punish India for its continued imports of Russian crude oil, which the U.S. claims fuels Russia’s war in Ukraine. India, the world’s fifth-largest economy and Russia’s biggest oil buyer, imported 1.75 million barrels daily from January to June 2025, saving billions through discounted prices. The move has sparked outrage in India, with a surge in anti-U.S. sentiment and accusations of economic coercion, especially as bilateral trade, valued at over $190 billion annually, faces disruption.
“Look, India was their biggest customer. I put a 50% tariff on India because they’re buying oil from Russia. That’s not an easy thing to do,” Trump told Fox News, defending his policy. However, India has called the tariffs “unfair, unjustified, and unreasonable,” arguing that its oil purchases are driven by the energy needs of 1.4 billion people and were initially encouraged by the U.S. to stabilize global markets. The collapse of trade talks, stalled over India’s refusal to open its agriculture and dairy sectors, has further deepened the rift.
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Despite the tensions, Trump signaled a willingness to mend ties, stating on Tuesday that negotiations with India are ongoing and that he plans to discuss the issue with Prime Minister Narendra Modi. Sergio Gor, Trump’s nominee for U.S. ambassador to India and special envoy for South Asia, downplayed the tariffs as a “little hiccup” during a Senate hearing, expressing optimism about progress during an upcoming visit by India’s commerce minister. “We hold our friends to different standards,” Gor said, emphasizing efforts to keep India aligned with U.S. interests rather than drifting toward Russia or China.
On the same program, Trump expressed growing frustration with Russian President Vladimir Putin over the Ukraine war, hinting at stronger measures like sanctions on Russian banks and oil but stopping short of specifics. “My patience is running out and running out fast,” he said, urging European allies to join in any future actions. As India navigates the economic fallout, with analysts predicting a potential GDP drop below 6%, the tariffs highlight the delicate balance between geopolitical strategy and trade relations, with implications for U.S.-India ties in an increasingly volatile global landscape.
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