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Tariff Dispute Strains Otherwise Cordial Narendra Modi–Donald Trump Ties, Says US President

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Washington: US President Donald Trump has acknowledged that while his personal rapport with Prime Minister Narendra Modi remains strong, differences over trade and energy policies have caused some unease between the two leaders. Speaking at a House Republican members’ retreat, Trump pointed to India’s oil imports from Russia as a key source of friction.

Trump said Prime Minister Modi was displeased with Washington’s decision to impose steep tariffs on Indian goods, a move the US administration linked to New Delhi’s continued purchase of Russian crude. “I get along very well with Modi, but obviously he wasn’t pleased because India had to deal with very high tariffs,” Trump remarked, adding that the situation had eased somewhat after what he described as a substantial reduction in such imports.

The US has levied duties amounting to nearly 50 per cent on certain Indian products, arguing that India’s large-scale buying of discounted Russian oil indirectly supports Moscow’s economy amid the ongoing war in Ukraine. Trump reiterated that the tariff policy was part of a broader strategy to exert pressure on countries maintaining strong trade ties with Russia.

A day earlier, the US President had warned that further increases in tariffs on Indian exports were possible if New Delhi failed to address American concerns. During his address, Trump suggested that Indian leaders were keen to avoid an escalation and were aware of his dissatisfaction over the issue.

Defending his approach, Trump said the tariff measures were proving beneficial for the United States, both economically and strategically. He also praised Prime Minister Modi personally, describing him as a capable leader who understood the importance of maintaining stable relations with Washington.

The comments come amid repeated US warnings to India over its energy dealings with Moscow. Trump has consistently argued that India’s oil purchases undermine Western efforts to isolate Russia over the Ukraine conflict and has openly linked trade penalties to this issue.

At the same time, Trump has projected himself as a potential intermediary in the Russia-Ukraine war, citing separate engagements with Russian President Vladimir Putin and Ukrainian President Volodymyr Zelenskyy, though no tangible progress has been announced.

India, however, has pushed back against some of Trump’s claims. New Delhi has previously rejected assertions that Prime Minister Modi assured the US of halting Russian oil imports, stating that no such commitment or discussion took place.

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