US President Donald Trump and Prime Minister Narendra Modi share a “very good working relationship” and are expected to resolve differences over the tariff issue linked to India’s purchase of Russian crude oil, US Senior Counsellor for Trade and Manufacturing Peter Navarro said.
Navarro referred to an opinion piece he had written earlier, in which he argued that India’s imports of Russian oil increased after Moscow’s invasion of Ukraine. He claimed that India’s purchase of Russian crude and export of refined petroleum products supported Russia’s economy.
The official said the matter had since been addressed and recalled facing criticism from India after the article was published. He added that public reactions were not the way to resolve policy differences.
US tariff concerns over Russian oil imports
Navarro said the issue would be handled directly by Trump and Modi, adding that it was not his role or that of other officials to intervene in discussions between the two leaders.
The comments come after the US Senate passed the Lindsey O. Graham Sanctioning Russia and Iran Act of 2026 on August 7. The bipartisan legislation, approved by an 86-11 vote, could allow the US president to impose tariffs of up to 100% on imports from countries that continue buying Russian oil and gas.
The proposed measures target major purchasers of Russian energy, including India and China, with the stated objective of reducing financial support for Moscow’s economy and military operations in Ukraine.
India’s reliance on discounted Russian crude
The legislation also proposes sanctions against Russian officials, financial institutions, energy projects and vessels allegedly used to bypass international restrictions.
India increased its purchases of discounted Russian crude after the Russia-Ukraine conflict began in 2022. The move helped Indian refiners manage rising energy costs and maintain supplies amid global market volatility.
Russia was not traditionally among India’s major crude suppliers. However, discounted Russian oil became an important source for Indian refiners as the country sought affordable energy supplies.
The imports also helped India manage supply risks during disruptions affecting traditional energy routes, including concerns around shipping through the Strait of Hormuz.
While the US has raised concerns over India’s energy trade with Russia, Indian officials have maintained that crude imports are driven by national energy security requirements and market considerations.
