At a Republican gathering in Washington, D.C., on January 5, 2022, President Donald Trump stated that Indian Prime Minister Narendra Modi is "not happy" as a result of large amounts of tariffs being charged by the United States to India. Trump called Modi a "nice man" but commented that there are trade issues that create "tension."
Trump Modi Tariffs: What Sparked the Comment?
During a talk, Donald Trump mentioned how well he knows Modi, while also adding: "I have a great relationship with Modi. Right now, he doesn't like me very much because of all the tariffs he's got."
This ties back to the current tariffs on goods from India due to U.S. tariffs on Indian goods due to very high levels of imports into the U.S. These tariffs are made up of two components: 25% of them are to try to even out the playing field for fair trade, and the remaining 25% come from U.S. sanctions on Russia due to the war in Ukraine.
Trump sees the tariffs as a way of encouraging India to purchase less from Russia in order to support the U.S. goals. He also recalls a time when Modi requested to meet him regarding the delays in the delivery of Apache helicopters to India as a result of tariffs.
US India Trade War Timeline: From Friends to Fees
In 2019, at the "Howdy Modi" event held in Texas, President Trump and Prime Minister Modi were able to embrace each other and refer to each other as genuine friends. When we turn to the future to 2025, we find a different situation.
July 2025: Trump imposes 25% tariffs on goods being imported from India in protest of India's high rate of duty on American-made goods. August 6: An additional 25% tariff brings the overall tariff to a total of 50%. This is the worstimal situation for India.
Why is this being done? Because India has a craving for cheap Russian oil since the Russia/Ukraine war. The U.S. views India as a nation attempting to bypass the economic sanctions imposed on Russia by purchasing oil from Russia at discounted rates and refining it and reselling the refined product to the United States.
By the end of 2025, there will be six rounds of negotiations. According to the secretary of commerce, there is an agreement "just about to occur" that would include the reduction of reciprocating tariffs. However, there has yet to be a final agreement reached, which has left exporters sweating over orders for 2026.
Russian Oil Role in Trump Modi Tariff Drama
From 2022 to 2025, India increased its purchases of crude oil from Russia sharply and saved billions of dollars due to the 20-30 per cent discount given on these crude oil supplies from Russia. Even with pressure from the US, Indian state-owned oil companies, such as IOC and BPCL, continue to purchase Russian crude oil.
Former President Donald Trump claimed that India significantly decreased its import of crude oil from Russia after Trump contacted India. Senator Lindsey Graham claims that India's ambassador to the US cried out for Trump's help to convince him to ease tariffs on crude oil, saying, "India has cut back on its imports of Russian oil—ease your tariffs!"
The December 2025 data shows a substantial decline in Russian crude oil imports by India due primarily to the decision by Reliance Industries to cut its purchases. Nevertheless, state-owned oil refineries continue to purchase Russian crude oil even if that increases the pressure on them from the US.
The government of India is denying that Prime Minister Modi made a commitment to discontinue the purchase of Russian crude oil. However, India is reducing the amount of Russian crude oil it purchases to ease tensions with the US.
Impact of 50% Tariffs on Indian Exports and Economy
These duties crush sectors sending $48 billion yearly to US. Textiles, gems, pharma, auto parts—prices jump 50%, orders flee to Vietnam, Bangladesh.
Exporters warn: No January 2026 deal means lost contracts for H1. Jobs at risk in Gujarat mills, Tamil Nadu factories.
India fights back with its own duties, but hurts US farmers too—soy, almonds face walls. Bilateral trade hit $190 billion in 2025, down 5% from peaks.
Consumers pay more: iPhones assembled in India cost extra stateside.
PM Modi Trump Relationship: Strong Despite Trade Strain?
Modi and Trump bonded over defense—like 68 Apache choppers India ordered. Trump rushed deliveries after Modi's plea, calling it a win.
Quad alliance holds: India joins US, Japan, Australia against China. But trade bites—Trump calls India's economy "dead" in 2025 rants.
Modi stays cool, pushes "Make in India" to dodge fees by making stuff in US. Personal chats keep doors open amid noise.
Latest January 2026 Updates on US India Trade Deal
Six rounds done by December 2025—no timeline, but "sooner than later." US Trade Rep calls India's offers "best ever," but stalls on farm goods like corn.
Trump warns Sunday on Air Force One: "We can raise tariffs quick if no help on Russia oil." India eyes interim pact by March, full BTA later.
Exporters push for January close to lock H1 2026 business. White House hints flexibility if oil cuts prove real.
How Tariffs Affect Everyday Indians and Americans
In India, factory workers fret layoffs as US buyers shop elsewhere. A Surat diamond polisher loses shifts—family skips vacations.
US shoppers see pricier Indian spices, clothes at Walmart. Apple pays more for iPhone parts from Foxconn India.
Global ripple: Oil prices steady as India buys less Russia crude, helping Ukraine aid goals.
Broader US Trade Policy Under Trump 2.0
Trump's back with "America First"—China faces 60%, Mexico threats over migrants. India not alone; 50% is high but below foes.
Goal: Balance $1 trillion deficit. Reciprocal tariffs match India's 100%+ on some US bikes, whiskey.
India negotiates smart—offers dairy access, eases row crops.
India's Strategy to Beat Trump Tariffs
Boost local making: PLI scheme pumps $25 billion into electronics, pharma. Exports to US via Vietnam? No—direct deal better.
Cut Russia oil gradually: More from US, Saudi. Ambassador lobbies Hill—Graham's on board.
Modi woos CEOs: Tesla, Google build factories, dodging import hits.
Expert Views on Trump Modi Tariff Tensions
Trade watchers say deal likely by Q1 2026—politics align post-US midterms. "Tariffs hurt both; handshake coming," says analyst.
Critics call it bullyball—India's growth at 7% shrugs it off long-term.
After I became President, #Modi came to meet me#Modi — Sir, can I see you #please? 🙏#Trump — Okay
— Ashok Saha🇮🇳 (@AshokSaha1992) January 7, 2026
But now #Modi is not happy with me because I stopped him from buying #Russian Oil” 🤡#Trump is mocking India everyday, but our Fattu #PM is silent 😭 pic.twitter.com/QW6vVZ1p5J
Future of India US Ties Beyond Tariffs
Defense booms: $20 billion arms sales. Tech pacts on AI, chips.
Climate: Both push green, India leads solar. Geopolitics binds vs China.
Trade fix could double bilateral to $500 billion by 2030.
