Trending Now
We have updated our Privacy Policy and Terms of Use for Eurasia Group and its affiliates, including GZERO Media, to clarify the types of data we collect, how we collect it, how we use data and with whom we share data. By using our website you consent to our Terms and Conditions and Privacy Policy, including the transfer of your personal data to the United States from your country of residence, and our use of cookies described in our Cookie Policy.
{{ subpage.title }}
Activists of All India National Congress burn an effigy of US President Donald Trump and Prime Minister of India Narendra Modi during a protest in Kolkata, India, after the Trump administration announced a 25% tariff on Indian goods, on August 1, 2025.
Why is India rebuffing Trump over Russian oil?
The days of “Howdy, Modi” are over.
Six years on from a gigantic rally in Houston, Texas, where US President Donald Trump and Indian Prime Minister Narendra Modi held hands, the two are fighting a war of words and tariffs.
The spat began last week when Trump, desperately seeking ways to pressure Russian President Vladimir Putin to end the war in Ukraine (Putin has ignored Trump’s demands to do so for months), slapped tariffs and threatened fines on India, the second-largest purchaser of Russian crude. The idea was to force Delhi to stop buying Russian oil, starving the Kremlin of revenue for its war machine. On Wednesday, Trump upped the ante further, announcing he would double India’s tariff rate to 50% later this month.
But Modi has so far refused to back down – his Foreign Ministry reiterated on Wednesday that Trump’s proposed tariffs are “unjustified and unreasonable.” Adding fuel to the fire, the leader of the world’s largest economy and the head of the world’s most populous nation are still feuding over whether the US helped broker a ceasefire between India and Pakistan in May.
So why is Modi now clashing head on with the man he once called a “true friend”?
Firstly, there’s a monetary component.
Before the full-scale invasion of Ukraine began in 2022, India only sourced 0.2% of its oil from Russia. Now, Moscow is responsible for roughly one third of all Indian oil imports, with Delhi profiting from a discounted price that resulted from sanctions.
“Indian refineries save about $1 billion a month by buying Russian crude,” said Eurasia Group’s South Asia Practice Head Pramit Pal Chaudhuri, a lower amount than previously – the Russian oil discount has diminished in recent weeks – but still significant.
While India requires this fuel for its own energy needs, it also uses the discounted oil to generate major revenues from exporting refined petroleum products in which crude in an input, like diesel and jet fuels. In this trade, Europe is one of India’s largest markets.
“Purchasing crude oil from Russia and refining it for the market (which includes European countries) has allowed India to not only profit from the purchases but maintain its political and economic relationship with Russia,” Manjari Chatterjee Miller, a senior fellow at the Council on Foreign Relations, told GZERO.
Secondly, India sees this as part of broader trade talks with the US.
The savings that India has made from buying Russian oil have been “useful,” per Chaudhuri, “but losing this would hardly break the bank.” More vital for India are the broader trade talks with Trump, with the next round of negotiations set for Aug. 25.
“There is a belief in New Delhi that Trump’s tariff threats are being used as leverage to extract concessions in order to secure a favourable trade deal with India, reflecting Trump’s proclivity to connect trade and non-trade issues,” said Dr. Chietigj Bajpaee, a South Asia expert at Chatham House.
The US leader has used the Russian oil purchases to justify the pressure on India, but he has another trade interest at hand: he wants Delhi to lower its notoriously high tariffs and grant the US access to its vast agricultural and dairy markets, per Chaudhuri.
Viewing Trump’s moves as a negotiating ploy, Modi sees little interest in backing down.
Thirdly, the Indian public doesn’t want to see Modi surrender to foreign pressure.
Trump’s words have piqued some in India, especially when he suggested that it had a “dead economy.”
“They’ve been seen as a little insulting, to be honest, and it has certainly worsened public opinion [toward Trump],” The Asia Group’s India Practice Chair Ashok Malik, who was a policy adviser in India’s foreign ministry, told GZERO. Modi, he added, now “has to press back.”
This isn’t so much about Trump but rather about rejecting foreign interference, according to Miller. India sees itself as fiercely independent, with a long history of “non-alignment” to any one global pole.
“For India to back down in the face of US tariff threats and essentially downgrade its relationship with Russia will also absolutely not play well among the Indian public,” said Miller. “Modi cannot be seen kowtowing to any US administration.”
Finally, India doesn’t want to lose Russia.
India values its decades-long relationship with Russia, principally because Moscow is a hedge against its chief Asian rival, China. Delhi has long had tensions with Beijing – over border disputes, technological rivalries, and China’s support for Pakistan. While relations with China have thawed a little this year – Modi is visiting China for the first time in seven years at the end of the month – India doesn’t want to anger Russia by bending the knee to Washington, as such a move would risk pushing the Kremlin even closer to Beijing.
“India has a larger interest in keeping links with Russia,” said Chaudhuri. “It believes [in] a combination of ‘respect and money’ that keeps Russia neutral when India and China clash (so far true) and provides other geopolitical benefits.”
The repudiation of US pressure, though, may still have consequences for India’s foreign policy.
“Unless Modi and Trump can reach an agreement,” says Miller “this is an incredibly destabilizing moment for the US-India relationship, and recovery will be difficult.”
Indian Prime Minister Narendra Modi gestures during a joint press conference with U.S. President Donald Trump at the White House in Washington, D.C., U.S., February 13, 2025.
What We're Watching: Modi defies Trump on Russian oil, Bolsonaro put under house arrest, Israel proposes full occupation of Gaza
India digs in heels amid Trump’s tariff threat
US President Donald Trump has doubled down on his tariff threat against India, warning he will “substantially” raise the duty on Indian imports in order to stop Delhi from buying Russian oil. India is unmoved, though, calling the threat “unjustified.” This spat might not just be about oil, though – amid ongoing trade talks, Washington is pressing India to open up its massive agricultural markets, a bitter pill for Indian Prime Minister Narendra Modi to swallow.
Brazil’s top court puts Bolsonaro under house arrest
Brazil has placed former President Jair Bolsonaro under house arrest, after he violated the terms of a previous court order by posting on social media. The right-wing leader and Trump ally is on trial for allegedly planning a coup after his 2022 election loss. The latest move is certain to heighten US-Brazil tensions – last month Trump imposed 50% tariffs on Brazil, blasting current leftwing president Luiz Inácio Lula da Silva for a “witch hunt” against Bolsonaro.
Netanyahu to propose full Gaza occupation
With Gaza ceasefire talks once again going nowhere, Israeli Prime Minister Benjamin Netanyahu will reportedly seek approval to fully occupy the strip at a Cabinet meeting Tuesday evening. Israel already controls 75% of the enclave, and the head of the Israeli military has warned that a full occupation could put soldiers and the remaining hostages, 20 of whom are still believed to be alive, at risk. Israel first took control of Gaza during the Six Day War in 1967, but formally withdrew its military and settlers in 2005 for security reasons. Netanyahu opposed that move at the time.
Graphic Truth: India dismisses Trump’s threats on Russian oil
India has said it will continue purchasing Russian oil, despite US President Donald Trump announcing a 25% tariff and threatening an “unspecified penalty” for doing so last week. New Delhi has ramped up its purchases of discounted Russian crude since US and European sanctions against Moscow took effect in 2022 over the Kremlin’s invasion of Ukraine. But those imports are now in Washington’s crosshairs as Putin continues to ignore Donald Trump’s demands for peace talks with Kyiv. Officials in Delhi defended their position – citing the country’s energy needs – but White House Deputy Chief of Staff Stephen Miller accused India of “financing” Russia’s war in Ukraine. Here’s a look at how important India’s purchases of Russian oil are for both countries.
What is Trump after in his latest Gulf states tour?
On Ian Bremmer’s World in 60 Seconds: Ian dives into the Brazil-China relationship, India and Pakistan ceasefire, and Trump’s Gulf States tour.
Ian Bremmer's takeaways:
- On Brazil-China ties: “As the Chinese de-risk away from the United States, that is a significant benefit to Brazil.”
- On India-Pakistan tensions,: “The ceasefire will hold—for now—but the region is more dangerous than it was a few weeks ago.”
- On Trump’s Middle East visit: “He (Trump) wants this to be the most successful foreign trip he’s had as president.”
A bird flu warning sign and quarantine zone in Switzerland.
Hard Numbers: Bird flu spreads, Modi joins Truth Social, Trans-Niger Pipeline explodes, JFK files released, Majority of Americans oppose tariffs, Who thinks Trump is a dictator?
166 million: The United Nations Food and Agriculture Organization is concerned over the spread of the H5N1 bird flu virus to mammal species, including zoo animals, pets, and cattle, which is causing havoc in agriculture and increasing the likelihood it could jump to humans. The spread among birds has already caused the culling of at least 166 million chickens in the United States, sending egg prices soaring.
31,600: Indian Prime Minister Narendra Modi joined Truth Social, the social media platform owned by US President Donald Trump. In his inaugural post on Monday, Modi shared a photo with Trump taken in 2019 in Houston, Texas, and as of Wednesday morning, he had 31,600 followers.
450,000: An explosion occurred Monday night on the Trans-Niger Pipeline in Rivers State's Bodo community, threatening over 450,000 barrels of daily crude oil production and causing a fire to rage through a local mangrove. Two individuals have been arrested in connection with the incident, and an investigation is underway. The pipeline has been the subject of terror attacks before, but no such link has yet been established.
80,000: Conspiracy theorists, start your engines. President Donald Trump on Tuesday released approximately 80,000 pages of unredacted documents related to President John F. Kennedy’s 1963 assassination. While White House Deputy Press Secretary Harrison Fields claimed that Americans “are truly going to be shocked,” historians do not expect significant new revelations.
38: The latest exclusive GZERO-Echelon poll shows that 54% of American voters oppose US President Donald Trump’s 25% tariffs on Canada and Mexico, while 38% support them. Republicans favor them by a 47-point margin, but Independents and Democrats oppose them by margins of 30 and 76, respectively.
36: The same poll asked respondents which of a list of world leaders they would consider to be a dictator. North Korean President Kim Jong Un topped the list at 77%, followed by Russian President Vladimir Putin at 75%, and then by US President Donald Trump, at 36%.President Donald Trump and Indian Prime Minister Narendra Modi shake hands as they attend a joint press conference at the White House in Washington, DC, on Feb. 13, 2025.
Trump imposes tariffs, Modi brings gifts
As promised, US President Donald Trump announced reciprocal tariffs on all American trading partners Thursday afternoon. Each country will be assessed individually, factoring in value-added taxes, foreign tariff rates, industry subsidies, regulations, and currency undervaluation to determine customized duty rates. Trump claimed, “It’s gonna make our country a fortune.”
The tariff review will be completed within weeks or months and could kick-start bilateral negotiations with other countries. Trump took the occasion to reiterate that Canada should become a 51st state, chastising it for not meeting NATO spending thresholds and repeating his false claim that the US “subsidizes” Canada to the tune of $200 billion a year.
Then there’s India. Trump’s proclamation came ahead of his meeting with “total killer” Indian Prime Minister Narendra Modi at the White House. Modi reportedly arrived bearing a “gift”: tariff reductions on India’s imports of US electronics, medical equipment, and chemicals, as well as commitments to purchase American liquefied natural gas and defense equipment.
What else does Trump want from Delhi? Trump wants to reduce the US trade deficit with India, $45.6 billion in 2024. The average US tariff rate on Indian imports is currently 2.2%, while India’s is 12% on US goods. Trump also wants India to reduce the emigration of its citizens to the US – both H-1B visa-holders working in the tech industry and undocumented migrants. India is the third largest source of undocumented immigrants in the US.
On Thursday, Trump said he would match India’s tariffs. “We are being reciprocal with India … Whatever India charges, we charge them.”
Both men agreed on Thursday to begin talks on an early trade deal to resolve the tariff standoff. Modi said he would buy more US oil, gas, and military equipment while fighting illegal immigration, and Trump said the US would ultimately sell F-35 stealth fighters to India.
President Donald Trump speaks to reporters aboard Air Force One en route to New Orleans to attend the Super Bowl, on Feb. 9, 2025.
Hard Numbers: Trump to unveil steel tariffs, Paris AI summit begins, Ecuador faces runoff election, Maoist rebels killed, Baltics energized by Europe, Eagles soar over Chiefs
25: Donald Trump says he plans to announce a 25% tariff on steel and aluminum imports from all countries, including Mexico and Canada. It’s unclear when the tariffs will take effect, but the US president said Sunday that he would make a formal announcement on Monday.
80: Government and industry leaders from at least 80 countries are convening in Paris on Monday and Tuesday as the AI Action Summit gets underway inside the historic Grand Palais. This year’s summit, the third following similar gatherings in Bletchley Park (UK) and Seoul, Korea, is co-hosted by France’s President Emmanuel Macron and India’s Prime Minister Narendra Modi, and it will feature an open dialogue about AI regulation and innovation at a critical time for both geopolitics and the technology itself. US Vice President JD Vance is attending as he begins his first official trip abroad. GZERO’s Tony Maciulis will be reporting from the summit and bringing us an interview with Paris Peace Forum Director General Justin Vaïsse on Tuesday.
1: Ecuador’s President Daniel Noboa was expected to prevail in Sunday’s election and avoid a runoff, but the race against his leftist opponent, Luisa Gonzalez, proved extremely close. Up less than 1% at the time of writing, and with nearly 80% of the ballot boxes counted, Noboa had 44.5% of the vote compared to Gonzalez's 44.1%. If neither candidate secures an outright majority, a runoff will be held on April 13.
31: Security forces battled Maoist rebels in the Bijapur district of Chattisgarh in central India on Sunday, killing 31 insurgents. The left-wing communists, part of the Naxalite movement, have been fighting with India’s government since 1967. Two Indian commandos were also killed in the clash.
3: The three Baltic countries have bid farewell to Russia’s power grid. Estonia, Latvia, and Lithuania completed their switch from the Russian to the European grid on Sunday. European Commission President Ursula von der Leyen called the move — amid heightened security owing to suspected sabotage of underwater cables and pipelines in the Baltic Sea — a new era of freedom for the region.
40-22: The Kansas City Chiefs were hoping for a historic hat-trick Super Bowl win last night in New Orleans, but it wasn’t to be. The Philadelphia Eagles dominated from the start, closing out the first half at 24-0, and finishing the game 40-22, with their quarterback, Jalen Hurts, winning MVP.
Former Pakistani Prime Minister Imran Khan pauses as he speaks with Reuters during an interview, in Lahore, Pakistan in March 2023.
Hard Numbers: Pakistan indicts Imran Khan (again), RFK wants polio vaccine revoked, India eyes one election, Australia charges big tech, Zuckerberg and Bezos make YUGE donations
200: Former Pakistani Prime Minister Imran Khan and his wife, Bushra Bibi, were indicted on Thursday on charges of unlawfully selling state gifts, including jewelry, at undervalued prices. They pleaded not guilty the same day, calling the charges politically motivated amid nearly 200 cases Khan has faced since his 2022 ouster. Khan and Bibi received 14-year sentences before this year’s election, but those terms were suspended on appeal following a prior three-year sentence in a related case.
14: A lawyer for Robert F. Kennedy Jr., Donald Trump's pick to helm the Department of Health and Human Services, has filed a petition to pause the distribution of 14 vaccines – including polo, hepatitis A, and other deadly diseases. The petition also asks the agency to revoke its polio vaccine approval and end COVID-19 vaccine mandates around the country.
1: India’s cabinet has approved legislation for simultaneous national and state elections, the first step in advancing Prime Minister Narendra Modi’s “One Nation One Election” plan. Supporters say it would put a stop to India’s state of “perpetual elections,” but critics argue it would favor the national ruling party, Modi’s BJP, in local races.
160,000,000: In its latest crackdown on Big Tech, Australia will charge social media giants like Meta and Google millions if they don’t pay local media for news content. All platforms with revenue over AU$160 million will be obliged to pay up, but charges will be offset by any commercial agreements voluntarily struck between the platforms and news media businesses.
1,000,000: Nothing says sorry quite like cold hard cash. Meta announced on Wednesday that it's donating $1 million to the inaugural fund of President-elect Donald Trump, and Amazon.com, not to be outdone, plans to do the same. The moves appear to be fence-mending gestures – or, as critics call them, attempts to curry favor. Meta founder Mark Zuckerberg's relationship with the president-elect soured after Facebook and Instagram suspended Trump’s accounts in 2021 for his praise of the Jan. 6 Capitol rioters, and Trump has been critical of Jeff Bezos for owning the Washington Post -- and the newspaper's political coverage.