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businesspress > Blog > Business > New Tariffs on India Over Russian Oil Have Seriously Impacted Trump-Modi Relations
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New Tariffs on India Over Russian Oil Have Seriously Impacted Trump-Modi Relations

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Last updated: August 7, 2025 7:56 am
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Published August 7, 2025
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Weeks following the inauguration of US President Donald Trump’s second term, Indian Prime Minister Narendra Modi was among the first international leaders to visit Washington. As the two nations established the lofty goal of tripling bilateral commerce to $500 billion by 2030, he referred to Modi as his “great friend”. However, less than half a year later, the relationship seems to have collapsed.

Trump has already placed 50% tariffs on items imported from India, and he has not backed down from his prior warning of adding 10% to the country’s membership in the Brics grouping, which South Africa, China, and Russia founded.

On Wednesday, Putin proposed an extra 25% price, which the Indian government referred to as “unfair, unjustified, and unreasonable, in response to Delhi’s purchase of Russian oil. Thanks to the efforts of both nations’ successive governments, bipartisan backing, and agreement on international problems, the relationship has grown stronger over the past 20 years, and this is a startling turnaround. Washington and Delhi have given encouraging indications of an impending trade agreement in recent weeks. That now becomes more and more challenging, if not impossible.

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