After doubling tariffs on India to 50% over Russian oil imports, U.S. President Donald Trump indicated that he may even pause trade talks between the two countries until the oil issue was ‘resolved’. Speaking to journalists at the White House on Thursday, Mr. Trump responded to a specific question about whether there would now be an increased pace in negotiations for the bilateral trade agreement (BTA). 

Trump tariff live updates – August 08, 2025

“No, not until we get it resolved,” Mr. Trump replied in what appeared to be a reference to his demand that India cancel its oil imports from Russia until the war in Ukraine ends. 

A team of U.S. negotiators are due to travel to India on August 25 for the next round of BTA talks, that were launched when Prime Minister Narendra Modi travelled to Washington in February this year. Despite five rounds of face-to-face talks in Delhi and Washington, and more discussions over videoconference, the negotiators were unable to agree to a “mini-deal” ahead of Mr. Trump’s August 1 deadline for global tariffs.

As a result, Mr. Trump announced 25% tariffs on the import of Indian goods last week, and then followed it up with another 25% on Wednesday, as penalty for India’s purchase of Russian Ural, which the U.S. claims is “financing” Russian President Vladimir Putin’s war in Ukraine. 

It was unclear whether Mr. Trump’s remark was off-the-cuff and a threat intended to put pressure on India to reduce or end its energy trade with Russia, or will be followed up with a suspension of trade talks. Commerce Ministry sources said that there had been “no update” on the issue, indicating that they still expect the American team in Delhi later this month. India has refused to reduce Russian oil imports so far, although private refiners are reportedly slowing their orders. The Ministry of External Affairs has called the U.S.’s penalty tariffs “extremely unfortunate” and “unfair, unjustified and unreasonable”.