PM Modi and Trump hold first telephonic talks since Russia sanctions law; discuss trade, defence

Prime Minister Narendra Modi and US President Donald Trump held their first telephonic conversation since Trump signed into law a measure allowing his administration to impose tariffs of up to 100% on countries buying Russian oil and gas, with the two leaders discussing India-US cooperation in trade, defence, energy and critical technologies.

“Had a productive conversation with President Trump. We reviewed our bilateral cooperation in trade, defence, energy, critical technologies and other areas,” Modi said in a post on X on Wednesday.

Also read: US tariffs on India: A timeline of duties, deals and reversals


“We agreed to maintain close engagement to take our Comprehensive Global Strategic Partnership forward,” he added.

The two leaders also exchanged views on regional and international issues, including ongoing efforts to advance global peace and security.

“We also exchanged views on regional and international issues, including ongoing efforts to advance global peace and security,” Modi said.

Russia sanctions law and how it impacts India?

The Lindsey O. Graham Sanctioning Russia and Iran Act of 2026, signed by Trump on September 18, gives his administration the power to impose tariffs of up to 100% on countries buying Russian oil and gas. The law also expands sanctions on Russia's energy and defence sectors and targets its so-called “shadow fleet” and other entities involved in sanctions evasion. It comes into effect within 30 days.

Under the law, Trump is required to impose duties of up to 100% on goods imported from the five biggest buyers of Russian crude oil or natural gas, based on volumes in the 12 months before the legislation was enacted. It also covers countries that knowingly make new purchases of Russian oil or gas after the law takes effect, as well as the top five countries helping Moscow evade sanctions.

India and China are among the biggest buyers of Russian oil, putting them at the centre of the potential tariff risk. However, the legislation does not name the countries that will ultimately be targeted, leaving the Trump administration to determine which nations qualify and what tariff rates they face.

The measure therefore adds uncertainty to India's trade relationship with the US. India has defended its purchases of Russian energy on the grounds of securing affordable supplies, while New Delhi has warned Washington that new tariffs could affect bilateral ties.

The law provides an exemption from gas-related duties for countries whose Russian gas imports accounted for less than 15% of Russia's total exports during the relevant period, provided they have taken “significant steps” to reduce those imports.

Also read: Trade deal between India and US done & dusted: Piyush Goyal

India-US trade deal: Where negotiations and tariffs stand

India and the US issued a joint statement on February 6 announcing an agreement on a framework for the first phase of their bilateral trade agreement.

Two days earlier, the countries had reached a trade deal under which the US was to reduce its reciprocal tariff on Indian goods from 25% to 18%, but that 18% rate was never implemented.

The US subsequently rescinded the additional 25% tariff linked to India's Russian oil purchases on February 7. The US Supreme Court struck down the reciprocal-tariff system on February 20, after which Indian goods once again faced only MFN duties.

The US then introduced a new 10% global tariff regime on February 24 for 150 days. After that expired, Washington imposed a 10% tariff specifically on India under Section 301 on July 24, citing concerns related to “forced-labour”.

The 10% Section 301 tariff currently applies to Indian exports, with certain goods excluded. Separate sectoral duties include 50% on steel and aluminium and 25% on auto components, while smartphones, medicines and energy products are exempted.