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US President Donald Trump welcomes Indian Prime Minister Narendra Modi to the White House for bilateral discussions about trade and security on February 13, 2025.
Is a US-India détente near?
After months of tensions between the world’s richest country and the world’s most populous one, it appears that the United States and India are on the verge of making a trade deal.
“We’re going to be bringing the tariffs down,” US President Donald Trump said during a swearing-in ceremony for the newly-minted US Ambassador to India Sergio Gor, while noting that India’s purchases of Russian oil have decreased. He didn’t give a timeframe, but added that the two sides were “pretty close” to a deal.
The inevitable question will be how much Trump lowers the tariff. The US president slapped a 25% levy on India in late July, in part because of Delhi’s purchases of Russian oil. When India refused to tell their companies to stop buying Russian crude, the tariff doubled to 50%.
“India’s oil purchases from Russia are on the downward trend,” Ashok Malik, partner and chair of The Asia Group’s India practice, told GZERO. “This creates a pathway for the removal of the 25% ‘oil tariff’ on India and, coinciding with Ambassador Sergio Gor’s arrival, steps towards the trade agreement.”
How did we even get here? Trump and Indian Prime Minister Narendra Modi were two peas in a pod during the former’s first term in office. The two leaders believed in espousing strength and in a foreign policy that prioritized bilateral relationships over multilateral agreements. They both viewed radical Islam and China with skepticism. When they held a giant rally together in Houston in 2019 – labeled, “Howdy, Modi” – the pair held hands.
“India was central in terms of our Asian strategy… It was incredibly simpatico between the two leaders,” Matthew Bartlett, who served in the US State Department during Trump’s first term, told GZERO. “Now there’s a new, rather difficult dynamic – maybe dysfunction – to it, and you would hope that we would be able to put this back on track in short time.”
When Trump returned to office earlier this year, it appeared that the two would start where they left off. Modi visited the White House in February, and the two leaders exchanged effusive messages.
But the good times didn’t last. Six months ago, when India and Pakistan announced a ceasefire following a brief flare-up in Jammu and Kashmir, Islamabad credited the Trump administration for helping to foster the peace, whereas India said the White House wasn’t involved. The issue was exacerbated when Trump told Modi over the phone that he was proud of the role he played in fostering peace – the Indian leader rejected his counterpart’s account.
Then in July, the tariff war began. Months later, even as the US has struck deals with the European Union, Japan, South Korea, and its greatest rival China, it still hadn’t reached any sort of truce with India. Washington’s 50% levy on India is now larger than the 47% effective rate on China.
“The entire dialogue between India and the US reached a boiling point where it was just very tense in terms of relations,” said Bartlett. “I think even Modi dodged Trump on his last trip.”
Further, Trump announced last week that he would exempt Hungary from Russian oil sanctions. No such luxuries were afforded to India, the second-highest purchaser of Russian oil.
The duties have taken a toll: Indian goods exports to the US, its largest foreign market, are down 40% over the last few months. Smartphones and pharmaceuticals were hit especially hard – exports of the former plunged by 58% from May to June. In September, the country’s trade deficit reached its highest level in 13 months.
Then the season changed. Tensions started to ease during the fall, as Modi and Trump shared kind words on social media following a September phone call. Then India started to comply with the new sanctions on Russian crude – they won’t even come into place until Nov. 21. A deal now appears imminent.
While conversations are moving in the right direction again, Malik says the relationship isn’t yet back to the heady days of that famous Houston rally.
“Does this resolve all problems and clean up all the bad blood from the past few months? Likely not,” said Malik. “But that’s fodder for a considered assessment on another day.”
US President Donald Trump and Hungary's Prime Minister Viktor Orbán shake hands as they pose for a photo, at a world leaders' summit on ending the Gaza war, amid a US-brokered prisoner-hostage swap and ceasefire deal between Israel and Hamas, in Sharm el-Sheikh, Egypt, on October 13, 2025.
What We’re Watching: Orbán seeks Russian oil carveout from Trump, Nigerien uranium to pass through risky area, Israel hits southern Lebanon
MAGA’s European hero comes to Washington – with a mission
Hungarian Prime Minister Viktor Orbán will visit the White House today to try to convince US President Donald Trump to allow him to continue purchasing Russian oil despite new US sanctions on Russia’s two largest oil firms. Oil refineries in China and India – the largest two buyers of Russian oil – are already exploring alternatives. But Orbán is hoping he can leverage his personal and ideological connection to Trump to gain a carveout. Landlocked Hungary relies on Russian pipelines for nearly 90% of its oil, though other non-Russian import routes via the Balkans are also possible. With the opposition surging ahead of next April’s election, there’s a lot on the line for Orbán. Will Trump give his mate a favor, or put his foot down?
Will Nigerien uranium reach Russia?
French officials believe Russian nuclear giant Rosatom struck a $170-million deal with the ruling military junta in Niger to purchase 1,000 tons of uranium from a mine formerly run by a French firm. The reported deal is the latest sign of Russia’s growing influence in the region, at the expense of the former colonial power, France. The greater concern with this purchase, though, could be that the uranium will have to pass through areas of Burkina Faso that are controlled by jihadist groups. Islamist militants are gaining momentum in West Africa – they have the Malian capital surrounded – sparking concern among governments in the region.
Israel attacks southern Lebanon
Israel temporarily breached its ceasefire deal with Lebanon on Thursday, issuing evacuation orders before bombing buildings in southern Lebanon it claimed were a part of Hezbollah’s military infrastructure. One person was killed and three were injured, per media reports. The Israeli military said the strikes were due to Hezbollah rebuilding its military capabilities, despite the Lebanese government agreeing to disarm the group. Fears are rising in Lebanon that Israel may resume major airstrikes if Hezbollah doesn’t give up its weapons soon, but Lebanon's government worries about inflaming local tensions if they push Hezbollah too aggressively.
Democratic candidate for New York City mayor, Zohran Mamdani, votes in the New York City mayoral election at a polling site at the Frank Sinatra School of the Arts High School in Astoria, Queens borough of New York City, USA, on November 4, 2025.
What We’re Watching: Some Americans head to the polls, German U-turn on Syrian asylum policy, Russia may have to find new oil buyers
It’s Election Day in the United States
It’s the first Tuesday after Nov. 1, which means it’s US election day. Key ballots to watch include the mayoral race in New York City – where democratic socialist Zohran Mamdani is poised to pull off an upset that will echo into national level politics – as well as state Supreme Court races in Pennsylvania, and ballot initiatives on gerrymandering in California. Don’t forget about the New Jersey governor election either, where GOP nominee Jack Ciattarelli is looking to eke out a victory against Democratic nominee Mikie Sherrill. New Jersey was once reliably blue but has been getting more purple in recent years: in 2020 Joe Biden won it by 17 points, but Donald Trump lost by just four last year.
Germany to end asylum for Syrians
German Chancellor Friedrich Merz says Syrians no longer have grounds for political asylum in his country now that the Syrian civil war is over. Merz called for a repatriation program to ease burdens on Germany and accelerate the rebuilding of Syria, though the United Nations warns Syria still isn’t ready to absorb a large population of returnees. It was exactly ten years ago that Chancellor Angela Merkel declared “Wir schaffen das” (we can do it), establishing a generous asylum policy that welcomed in more than a million Syrians fleeing their country’s horrific civil war. A decade later, with the war over and the far right surging on anti-immigrant backlash, Merz is now saying, “Wir schaffen das nicht.”
Is India buying less Russian oil?
Last month, Trump announced sanctions on Russia’s top two oil companies, in a bid to squeeze the Kremlin’s war effort by scaring off major crude buyers like India and China. Is it working? Preliminary data show India’s imports of Russian oil actually increased slightly in October compared to September. But wait, there’s more: India’s purchases in the second half of October plummeted compared to the first half. That may have something to do with the fact that Trump announced the sanctions on Oct. 23. They don’t take effect until later this month, so we’ll be watching to see what the November data tell us. With Chinese firms now also reportedly exploring alternative sources of oil, Russia may in fact start feeling the effects of US sanctions (for more on this, and whether it would change his approach to Ukraine, read here).
Trump bets big on Russian oil sanctions, but will it pay off?
President Trump has directly sanctioned Russia for the first time since retaking office, over President Putin's refusal to come to the negotiating table on Ukraine. It's a move aimed at weakening Putin’s war economy, says Eurasia Group's Gregory Brew, but one that could have ripple effects from Beijing to the US gas pump.
Trump is getting tough on Russian oil, but to have a real impact on Putin, he'll likely have to go further, which could undermine his big trade deals and push up gas prices. Here at home, US President Donald Trump is running out of patience with Vladimir Putin who refuses to return to the negotiating table for a ceasefire in Ukraine.
Last week, Trump took the surprising step of putting sanctions on two of Russia's largest oil companies, the first time the US has directly sanctioned Russia since he became president. Now, in theory, these sanctions should prevent Russia from selling oil to its two biggest customers, India and China, who together take more than two-thirds of Russia's crude oil exports an important source of income for Putin's war in Ukraine. But as ever, the devil is in the details.
Russia has been facing sanctions and other Western measures to disrupt its crude exports for years now, and it will probably find a way around these new sanctions if the US doesn't keep up the pressure. That means more sanctions will be necessary, not just on Russia, but on its customers. Secondary sanctions on Indian and Chinese refiners who have been buying Russian crude would help cut off the flow, but there could be blowback. Sanctions could anger the Indian and Chinese governments, undermining Trump's efforts to secure big trade deals with Beijing and New Delhi.
And even if some or all of Russia's customers decide to stop taking its oil, Trump could feel the pain back at home. The disruptive impact on Russia's crude oil exports could push up oil prices, which would, in effect, raise the price of gasoline in the United States. That means that after this big initial blow, Trump is likely to take it slow. He'll look to India to voluntarily back away from Russian oil to the EU to put on some new sanctions of its own, and finally to Putin to return to the negotiating table or risk tougher sanctions ahead. As ever, Trump will look to accomplish his goals without causing a big shock to oil prices. It's a delicate balancing act that Trump will have to manage as he tries to avoid nasty economic shocks that could undermine his position back at home.
Russian President Vladimir Putin chairs a meeting with members of the Security Council via video link at the Kremlin in Moscow, Russia, on October 24, 2025.
Will Trump’s new Russia sanctions work?
It’s been a tumultuous couple of weeks for US-Russia relations.
Two weeks ago, US President Donald Trump was considering handing Tomahawk missiles to Ukraine, which would allow Kyiv to strike deep into Russian territory. But, following a phone call with Russian President Vladimir Putin on Oct. 16, Trump decided to chop the Tomahawk plan, and announced a meeting with his Russian counterpart.
That quickly fell apart, though – reportedly because negotiations over a ceasefire deal had stalled – and by Oct. 23, an agitated Trump announced that he was sanctioning Russia’s two largest oil companies, Rosneft and Lukoil, which together produce half of Russia’s oil. This was a step that even the Biden administration refused to take, largely over fears that oil prices would spike, driving up inflation.
Now, combined with Biden-era sanctions on Gazpromneft and Surgutneftegaz, the US has blacklisted Moscow’s four largest crude producers.
There’s just one problem, per Eurasia Group’s Russia expert Alex Brideau.
“The new US sanctions are most likely insufficient to change Putin’s strategy in the war against Ukraine,” said Brideau. “The full effect will depend, in part, on whether the largest importers of Russian oil, India and China, halt these purchases.”
Will China and India halt purchases? Here’s the thing: they just might. This would be devastating for the Kremlin: the two countries combined currently purchase more than 80% of Russia’s crude exports, per the Centre for Research on Energy and Clean Air. What’s more, the oil & gas sector is vital to Russia’s government purse – it’s responsible for 30-50% of total budget revenues.
Even absent any pressure from the government to comply or ignore the sanctions, Chinese refiners are already looking elsewhere, per Eurasia Group’s Practice Head for China David Meale.
“I think there is no chance that China will push its firms to comply with the sanctions for the purposes of improving bilateral relations,” said Meale. “However, their major oil companies have already curtailed purchases due to how the threat of sanctions affects their other international interactions.”
India, meanwhile, has until now resisted Trump’s direct pressure to stop buying Russian oil, in part because it wants Moscow to stay neutral if China-India tensions flare up again. With the new US sanctions in place, though, it could be a different story.
“The sanctions on the two largest Russian oil firms have certainly changed the situation,” said Ashok Malik, partner and chair of The Asia Group’s India practice. “I would expect Russian oil purchases to decline significantly — at least in the medium run — should these measures be carried through.”
It seems the process has already begun: Reuters reported last week that Indian oil refiners are poised to halt purchases of Russian oil.
“A near-total halt in Russian crude imports by late November appears inevitable – not out of political alignment, but because continuing would endanger India’s economy itself,” Ajay Srivastava, founder of the Delhi-based Global Trade Research Initiative, told GZERO.
In a sign that the sanctions are already hurting Russian crude firms, Lukoil unveiled a plan yesterday to sell off its foreign assets.
So it looks like Moscow is in trouble? There are signs that the attritional war is starting to take a toll on the Russian economy, which had been remarkably resilient over the first three years of the war. The International Monetary Fund forecast that the Russian economy will expand by less than 1% this year – it grew over 4% in each of the last two years. Inflation has remained stubbornly high at around 8%. And Russians are becoming less optimistic about whether economic conditions are improving in their area, per a Gallup poll.
“Over a longer period of time,” said Brideau, “these trade-offs may become too difficult for the state to manage.”
A stubborn (Moscow) mule. If there is one last reason that Russia will continue this war, it’s Putin. The Russian leader has displayed an extraordinarily high threshold for pain on the battlefield: his army has suffered huge losses and is advancing in Ukraine at a snail’s pace, yet he has shown no willingness to compromise on his main war objectives. He believes that Ukraine belongs to Russia, and that NATO shouldn’t be continuing to expand along Russia’s border.
If this high pain threshold applies to economic suffering, too, then these sanctions won’t stop the war any time soon.
“Politically, Putin remains strongly committed to his objectives in Ukraine,” said Brideau. “He is willing to risk the long-term health of the Russian economy to pursue these goals.”
In this photo illustration, TikTok logo is displayed on a smartphone with the national flags of China and the United States in the background.
What We’re Watching: Trump and Xi’s Friday phone call, EU introduces new Russia sanctions, US plots Afghanistan return
The world’s most powerful pairing talk TikTok and trade
US President Donald Trump and Chinese President Xi Jinping reportedly discussed how they can keep TikTok online in the United States and whether they can ease trade tensions during a phone call Friday morning, their first since June. The topic of trade is a thorny one, most recently due to disputes over Nvidia chip purchases. As for TikTok, the two superpowers were expected to finalize a deal for the sale of the social media app – a consortium of US firms is set to control the company. If the TikTok deal is completed, it’s possible that Trump and Xi could meet in person during the Asia-Pacific Economic Cooperation summit being held in South Korea around Halloween.
EU introduces new sanctions on Russia
The European Union rolled out its 19th sanctions package to squeeze Russia’s war chest, pledging to end Russian liquified natural gas (LNG) imports by early 2027, blacklist 560 oil tankers, and target crypto platforms and Chinese firms doing business with Moscow. The package still needs to gain the approval of the 27-member bloc, but is expected to be adopted, and comes as Trump has said he is ready to sanction Russia but only if European nations stop purchasing Russian oil.
Is the US about to return to Afghanistan?
Trump declared Thursday that he wants the US military to regain control of the Bagram air base, a move that would return American troops to Afghanistan four years after withdrawal from the Taliban-held state. The move is all about China: the US has become increasingly wary of Beijing’s growing stockpile of nuclear weapons, and Trump highlighted the base’s proximity to the Asian giant as a reason to take it back. Actually regaining Bagram would require cooperating with the Taliban, a once-hostile foe of Washington. The two sides have been talking, but the noises right now suggest that a return to Bagram won’t be easy.Three Numbers, One Story: Trump ups India's tariffs
Three Numbers, One Story: Trump ups India's tariffs
The US imposed steep 50% tariffs on Indian goods Wednesday, doubling an earlier 25% levy after New Delhi increased purchases of Russian oil. The move threatens $48.2 billion in exports, hitting labor-intensive sectors like textiles, jewelry, leather, food, and autos hardest, though pharmaceuticals and electronics are spared. Indian exporters warn of job losses and unviable businesses, while Prime Minister Narendra Modi has vowed not to yield to US pressure on agriculture and dairy access. With trade talks stalled, India is preparing reforms to boost domestic demand and diversify exports toward Europe, Africa, and Southeast Asia.
Russian President Vladimir Putin and then-Indian ambassador to Russia Pankaj Saran attend a ceremony to hand over credentials at the Kremlin in Moscow, Russia, on April 20, 2016.
The Kremlin’s piece in the India-China puzzle: Q+A with Pankaj Saran
When US President Donald Trump threatened 50% tariffs on India last week over its purchases of Russian oil, it put Indian Prime Minister Narendra Modi in a quandary. Delhi has been growing ever closer to the West in recent years, but it also doesn’t want to lose its decades-long relationship with Russia – and it’s all because of China.
“India also wants to maintain a certain relationship with Russia – it keeps Moscow neutral when New Delhi and Beijing fight – which depends a lot on buying something from them,” said Eurasia Group’s South Asia Practice Head Pramit Pal Chaudhuri. “Purchases of Russian defence equipment are falling so oil [is] a useful substitute.”
To better understand why India’s relationship with the Kremlin is so crucial to Modi, as well as India’s views on the Russia-Ukraine war, GZERO spoke to former Indian Ambassador to Russia Pankaj Saran, who served in the role from 2016 to 2018. A diplomat for roughly four decades, Saran was also India’s deputy national security adviser from 2018 to 2021. This interview is edited for length and clarity.
Why is Russia so important to India?
For India, the primary strategic challenge is China, and it is not Russia.
India cannot afford to antagonize Russia, given the fact that in the last few years, Moscow has actually moved closer to China. So we have to keep Russia in play as a nation... The second reason is economic. We need all the natural resources and all the minerals and other resources to fuel our own growth and to meet our own demands. And thirdly, because of the fact that we’ve actually, historically speaking, had no real problems with Russia. We’ve had difficulties with the United States, with China, with Pakistan. But with Russia, the record is actually pretty clean, except for a brief period early on. And fourth, from a cultural and historical perspective, India and the Indian elite, regardless of the political parties in power, feel that you have to go and establish relationships beyond the Western world.
Is there a world in which India stops buying Russian oil?
Yes, sure. If the energy sources were to go back to normal, price-wise, India would also revert back to its normal, traditional sources, like the Gulf. Remember that, until 2022, India was virtually not importing any oil from Russia. This is quite a record, considering we have historically been an importer, and we have not imported oil from Russia, despite the best of relations since forever.
Note: There has been a discount on Russian oil ever since the European Union and the US placed sanctions on Moscow in 2022, right after Russia began its full-scale invasion of Ukraine. Read more here.
Is there a world in which Modi discourages Indian oil firms from buying Russian oil in response to pressure from the United States?
I can’t rule it out. What is also important is the Indian relationship with the United States. In today’s day and age, the India-US relationship has become very important, much more substantive than it ever was in the last 20-25 years… There is a lot at stake in the India-US relationship. He did stop buying Iranian oil during the first Trump administration. But the relationship with Russia is different from India-Iran.
Are the US tariff threats pushing Delhi toward Moscow?
To some extent, but it will not be a sharp swing to Russia, because the connectivities between India and the US have grown so much that it would be a very high-risk game to have any sharp swing towards Russia. But both Moscow and Beijing will definitely be quite pleased to see this sudden emergence of tensions between India and the US.
Turning to the Russia-Ukraine war: former US Ambassador to Russia John Sullivan said he believes Russian President Vladimir Putin doesn’t want a ceasefire and he wants victory. Do you agree with that assessment?
No, I don’t agree at all. I think this is the best chance we have to get Putin to enter into a ceasefire. And I think he also knows it. I think Alaska holds great promise. I think Putin is looking for a way out. He would be ready to get into a ceasefire, otherwise he wouldn’t go to Alaska... The question, of course, will be, what is the price he’s willing to pay if he’s offered a way out.
Is there anything you think Modi could do to encourage Putin to end the war in Ukraine?
This is a good time for Modi to talk with Putin. I’m quite sure that they’ve spoken, and I suspect also, there’s been some back and forth between Europe and Russia through the Indians… It is in India’s interest that this thing ends. I don’t see any way in which India would benefit from a continuation or an aggravation of tensions, which is not the same you can say maybe for the Chinese. Modi has tried to be part of the solution. He’s certainly not a spoiler in the mold of some of the Europeans.