Trump, PM Modi Will Resolve Tariff Issue Over Russian Oil Trade, Says US Official

US President Donald Trump and Prime Minister Narendra Modi will resolve the ongoing disagreement over tariffs linked to India’s purchase of Russian oil, a senior US official has said, signalling that Washington expects the issue to be handled through direct engagement between the two leaders. US trade adviser Peter Navarro said Trump and Modi have a strong working relationship while responding to questions about the proposed tariff measures targeting countries that continue to buy Russian energy. His remarks come at a time when the issue has emerged as a major source of tension in India-US trade relations.

The United States has been seeking greater pressure on countries that continue to purchase Russian oil as Washington attempts to reduce Moscow’s energy revenues. India, however, has maintained that its energy purchases are guided by national interests and the need to secure reliable supplies at competitive prices. India became a major buyer of Russian crude after the Russia-Ukraine war disrupted global energy markets. Discounted Russian oil provided Indian refiners with an opportunity to lower input costs and diversify supplies. New Delhi has repeatedly defended its right to purchase energy from sources that offer favourable commercial terms.

The issue has become particularly important because proposed US legislation could enable Washington to impose tariffs of up to 100 per cent on imports from countries buying Russian oil. Such a measure could have a significant impact on Indian exporters if it were implemented. The concern is not limited to the price of crude. The United States is one of the countrys most important export markets, and higher tariffs could affect Indian manufacturers and businesses selling products to American consumers.

The disagreement is also unfolding as New Delhi and Washington continue negotiations on broader trade arrangements. Both sides have been trying to address differences over tariffs, market access and other trade-related issues while keeping their wider strategic partnership on track. Navarro’s comments indicate that the Trump administration does not necessarily want the dispute over Russian oil to derail the broader relationship with India. His reference to the relationship between Trump and Modi also suggests that high-level political engagement could play an important role in finding a compromise.

A possible understanding could involve India continuing to secure energy supplies while taking steps that address Washington’s concerns over Russian oil. Greater purchases of US energy products could also become part of a broader trade agreement, although no such arrangement has been formally announced. The immediate question is whether the two governments can separate the Russian oil dispute from the larger India-US relationship. The two countries have significant common interests in defence, technology, energy and Indo-Pacific security, giving both sides reasons to avoid a prolonged trade confrontation.

For now, Navarro’s statement offers a signal that Washington expects the tariff dispute to be resolved through negotiations rather than allowed to escalate indefinitely. The next phase of discussions between India and the United States will determine whether Trump and Modi can reach an agreement acceptable to both sides. The outcome could have implications not only for bilateral trade but also for India’s energy strategy and its ability to maintain access to Russian crude while preserving its growing economic partnership with the United States.

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