Former US President Donald Trump has made it clear in a recent video message that the United States will not sign any trade deal with India unless it stops buying oil from Russia and agrees to better trade terms. On a question about trade negotiations with India, Trump replies, “No, not until we get it resolved.”
#WATCH | Responding to ANI s question, Just to follow up India s tariff, do you expect increased trade negotiations since you have announced the 50% tariffs? , US President Donald Trump says, "No, not until we get it resolved."
— ANI (@ANI) August 8, 2025
(Source: US Network Pool via Reuters) pic.twitter.com/qpBevmxWDA
“India can’t enjoy access to American markets while helping fund Putin’s war through Russian oil. The deal is off,” Trump said in his statement. His strong words come shortly after the US imposed a massive 50% tariff on Indian exports, a decision that has brought all trade talks to a sudden stop.
Also Read: Will India stop Russian oil imports after Trump threats? Govt breaks silence
India and the US had been holding discussions for months to finalize a trade agreement that would cover agriculture, digital trade, and technology. According to officials, India was ready to make some compromises, expecting a 15% cap on tariffs. But Washington surprised New Delhi with a full 50% rate, made up of a 25% base tariff and an extra 25% penalty for continuing Russian oil imports. The new penalty will take effect from August 27, 2025.
India has called the US decision “unfair and politically driven.” Meanwhile, farmer unions and trade groups in India have criticized the move, calling it an “economic attack.”
This setback has put US–India relations under stress. The two countries were once seen as strong partners in the region. But with Trump’s recent video and the tough new tariffs, the chances of a trade deal anytime soon look very unlikely unless India makes some big changes to its energy and foreign policies.
