PM Modi, Trump will work out Russian oil-related 100 per cent tariff issue, says US official

US President Donald Trump and Prime Minister Narendra Modi share a “very good working relationship” and would resolve differences over the tariff issue linked to India’s purchase of Russian oil, according to US Senior Counsellor for Trade and Manufacturing Peter Navarro.

Responding to a question, Navarro referred to an op-ed he had written in the Financial Times around six to eight months ago, in which he argued that India had not been involved in the Russian oil trade before Moscow invaded Ukraine but had subsequently increased its purchases and exported large volumes of refined products, which he said helped support Russia’s war effort.

Navarro said the issue had since been resolved and recalled facing strong criticism online from India after the article was published. As quoted by ANI, the official said such reactions were not the way problems were resolved in the US.


Also read: America hurting its own interest; India well-insulated against US tariffs on Russian oil, expert says

On the current tariff issue, Navarro said Trump and PM Modi had a good working relationship and would handle the matter themselves, adding that it was not his role or that of other officials to intervene.

The remarks come after the US Senate on August 7 passed a bipartisan bill that could give Trump the authority to impose tariffs of up to 100% on imports from countries, including India and China, that continue to buy Russian oil and gas. The legislation argues that such purchases help support Russia’s economy and finance its military operations in Ukraine.

The Senate passed the Lindsey O. Graham Sanctioning Russia and Iran Act of 2026 by an 86-11 vote. The legislation seeks to increase economic pressure on Russia and Iran and target countries that maintain significant energy trade with Moscow.

Under the bill, the US president would have the discretion to impose tariffs of up to 100% on imports from the five largest buyers of Russian crude oil or natural gas.

The legislation also proposes additional sanctions targeting Russian President Vladimir Putin, senior political and military officials, financial institutions, energy projects and entities linked to Russia’s war effort. It also extends sanctions to older and reflagged oil tankers allegedly used by Russia to bypass international restrictions and sustain energy export revenues.

Also read: India’s $40 billion Russian oil lifeline shouldn’t buckle under Trump’s 100% tariff threat

The broader aim is to limit financial flows supporting Russia’s economy and military campaign. The measure effectively gives major buyers of Russian energy a choice between continuing to purchase discounted Russian supplies and maintaining access to the US market.

India increased its purchases of discounted Russian crude after the Russia-Ukraine conflict began in 2022, seeking to meet domestic energy requirements amid volatility in global markets.

Russia had not traditionally been a major crude supplier to India. However, discounted Russian oil enabled Indian refiners to lower raw material costs and maintain domestic supplies, particularly during disruptions to transit through the Strait of Hormuz.

(With inputs from ANI)