Modi-Putin Meeting Raises Trade Tensions as U.S. Signals No Tariff Deal with India
NEW DELHI – Indian Prime Minister Narendra Modi met with Russian President Vladimir Putin on the sidelines of a recent summit,a move that has drawn sharp criticism from former U.S.President Donald Trump and cast a shadow over potential trade negotiations between New Delhi and Washington. Trump, in a post on his Truth Social platform, labeled the situation a “one-sided disaster” and signaled that a trade deal with India is unlikely given its increased reliance on Russian oil.
The meeting underscores India’s commitment to maintaining strategic partnerships with both Russia and the West, even as it navigates a complex geopolitical landscape. While India historically sourced most of its crude oil from the Middle east, it has considerably increased its purchases of discounted Russian oil since the war in Ukraine, with Russia now accounting for around 37% of India’s total oil imports. This shift has fueled a surge in trade between the two nations, reaching a record $68.7 billion in the 2024-25 financial year, with imports from Russia totaling approximately $64 billion and exports from India around $5 billion.Both countries aim to increase trade to $100 billion by 2030.
Trump’s comments highlight the growing friction over India’s economic relationship with Russia. He stated that India “shoudl have” offered to cut tariffs years ago, despite recent offers to reduce them significantly. The former president’s remarks suggest a reluctance to engage in trade negotiations while India continues to bolster its economic ties with Moscow.
India’s strategic autonomy and its long-standing relationship with Russia, dating back to the Cold War, are key factors in its foreign policy decisions. According to Sreeram Sundar Chaulia, an international affairs expert at New Delhi’s Jindal School of International Affairs, India values its “old and reliable strategic partners.” chaulia also suggested that the Indian government anticipates a temporary strain in U.S.-India relations, hoping to eventually “have the Russian cake and eat the American pie” as part of a multi-alignment strategy.