Trump Admits Tariffs on India Hurt US-India Relations

Former US President Donald Trump has admitted that his decision to impose high tariffs on Indian goods led to a strain in the relationship between the United States and India. In a recent interview with Fox News on Friday, Trump openly stated that placing tariffs on India “caused a rift” between the two nations.

Reason Behind the Tariffs

Trump explained that India had been one of the largest buyers of Russian oil. He said, “Look, India was their biggest customer. I put a 50 per cent tariff on India because they're buying oil from Russia. That's not an easy thing to do. That's a big deal and it causes a rift with India.”

This remark makes it clear that the tariffs were aimed at pressuring India regarding its energy ties with Russia. The former President has repeatedly criticised India’s ongoing trade in oil and military equipment from Russia, calling it a challenge for US foreign policy.

Stay informed with the latest news. Follow DXB News Network on WhatsApp Channel 

Impact on US-India Relations

The imposition of tariffs by Trump had a noticeable impact on diplomatic and trade relations between the United States and India. While India has maintained that its decision to purchase oil from Russia is guided by national interest and market considerations, the tariffs were seen as a direct economic and political pressure tactic by the US.

Trump’s interview suggested that he is aware of the tension his tariffs caused. He said, “But I've already done it. I've done a lot.” He further remarked that the issue with India buying oil from Russia is more of a Europe problem than a direct US problem.

Trump and PM Modi’s Relationship

Despite the tensions caused by tariffs, Trump emphasized that there is still a strong personal rapport between him and Indian Prime Minister Narendra Modi. His close aide, Sergio Gor, who has been nominated as the US Ambassador to India, also highlighted the “deep friendship” between the two leaders. Gor mentioned that the two countries are “not that far apart” and that a trade deal is still possible.

Earlier, India’s Union Minister for Commerce and Industry, Piyush Goyal, confirmed that India is actively engaging in dialogue with the US to reach a trade agreement. This indicates that both countries are still working towards resolving differences and strengthening their economic relationship despite recent challenges.

Current Status of Trade Talks

India is currently in active discussions with the United States to negotiate a trade deal. Union Minister Piyush Goyal also stated that India is negotiating with the European Union to conclude a trade agreement. These talks aim to balance trade, investment, and strategic interests, while ensuring that both countries can benefit economically.

Details of US Tariffs on India

The tariffs imposed by the United States on India have been substantial. Initially, Trump had levied a 25% tariff on all Indian goods imported into the US, which came into effect ahead of the initial 1 August 2025 deadline.

Later, via an executive order dated 6 August 2025, Trump imposed an additional 25% import duty on Indian goods, raising the total tariff to 50%. These new tariffs officially took effect on 27 September 2025.

The purpose behind these high tariffs, according to Trump, was India’s significant purchase of crude oil and military equipment from Russia. Trump has claimed that through these purchases, India indirectly supported Russia in the ongoing conflict with Ukraine.

Reactions in India

India, on its part, has defended its decision to continue purchasing oil from Russia, citing national interest and market dynamics. Officials have consistently stated that India’s energy needs and economic considerations guide these purchases rather than political alignment.

Despite the US tariffs, India continues to pursue a pragmatic approach towards trade relations with the United States. The ongoing talks show India’s willingness to negotiate on trade matters while maintaining its own strategic priorities.

Wider Implications

The tariffs imposed by Trump have wider implications for international trade and geopolitics. By targeting India, the United States sent a strong message about its stance on energy ties with Russia. This move also reflects the growing challenges in balancing economic interests and foreign policy objectives.

Trade experts note that while tariffs can influence buying patterns and create pressure, they can also strain diplomatic relations if not carefully managed. In this case, Trump acknowledges that his tariff policy did create tension, but he also believes that the overall relationship between the US and India can recover.

Future of US-India Trade Relations

Despite past disagreements and the imposition of tariffs, both countries are exploring ways to strengthen economic and strategic ties. Negotiations for a trade deal are ongoing, and senior officials from both sides continue to engage in discussions.

The US Ambassador nominee, Sergio Gor, highlighted that both countries are “not that far apart” in reaching a trade agreement. This suggests optimism for future cooperation, even after the strain caused by tariffs.

Donald Trump has openly admitted that the 50% tariffs imposed on Indian goods strained relations between the United States and India. The tariffs were primarily aimed at discouraging India from purchasing oil and military equipment from Russia.

Despite the strain, ongoing negotiations for a trade deal indicate that both nations are committed to strengthening their economic relationship. While India defends its actions as aligned with national interest, the United States acknowledges the complexity of global energy and trade policies.

The situation highlights the delicate balance between protecting national interests and maintaining strong international partnerships. Both India and the United States appear to be working towards finding common ground, ensuring that economic cooperation continues despite past disagreements.