Trump Freezes Trade Talks With India Over Russian Oil Dispute – “Not Until We Fix This”

The ongoing tensions between the United States and India just got a lot more serious. U.S. President Donald Trump has put trade negotiations with New Delhi on hold, saying they won’t resume until the bitter tariff dispute—sparked by India’s continued purchase of Russian oil—is resolved.

The move follows Washington’s recent decision to hike tariffs on Indian goods to a massive 50%, a jump from the previous 25%. The U.S. says the steep increase is a direct response to India’s imports of Russian crude, which it claims undermine American foreign policy and national security interests.

The Tariff Hike That Sparked It All

On August 6, Donald Trump signed an executive order increasing tariffs on a wide range of Indian products. The hike—an additional 25 percentage points—immediately doubled duties to 50%.

The White House made it clear: until India changes its approach to buying Russian oil, the trade penalties will stay in place.

This is the first time in recent years that tariffs between the two nations have reached such a high level, and it’s already sending ripples through industries dependent on bilateral trade.

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India’s Response: Refiners Hit Pause

India has so far defended its right to buy Russian oil, saying it prioritizes energy security and affordable fuel for its citizens. But behind the scenes, state-owned refiners have started to tread carefully.
According to reports, Indian Oil Corp., Bharat Petroleum, and Hindustan Petroleum have temporarily halted purchases of Russian Urals crude for October delivery. They are waiting for guidance from the Indian government before making further commitments.

While the pause is seen as a sign of caution, New Delhi has not publicly signaled any change in its overall oil-import strategy.

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U.S. Says It Still Values Partnership

Despite the tariff escalation, the Biden administration—through the U.S. State Department—has stressed that India remains a “strategic partner”.
State Department spokesperson Tommy Pigott told reporters that Washington remains committed to “full and frank dialogue” with New Delhi, even while the trade talks are on hold.

He added that the U.S. wants to address its “real concerns” about trade practices and energy sourcing, while maintaining strong overall ties with India.

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What Happens Next?

For now, the standoff shows no signs of easing. Donald Trump has made it clear that trade talks will remain frozen until there’s movement on the oil issue. India, on the other hand, appears ready to manage the economic impact while keeping its energy policy intact.

If the dispute drags on, experts warn it could hit multiple sectors—from agriculture exports to the tech industry—and potentially push both countries into a deeper economic rift.

Key Takeaways

• Trade talks paused: No negotiations until the tariff and oil import issue is resolved.
• Massive tariff hike: U.S. duties on Indian goods now stand at 50%.
• India holds its ground: Oil imports from Russia remain a priority, though refiners have paused some purchases.
• Diplomacy still alive: Both sides insist they value the partnership and will keep talking behind the scenes.