President Donald Trump’s massive tariffs on India have catalyzed various major trade tensions right now as disputes escalate over New Delhi’s continued purchase of Russian crude oil. Speaking aboard Air Force One on Sunday, Trump claimed that Prime Minister Narendra Modi had committed to ending Russian oil purchases, and India’s foreign ministry denied any such conversation even took place. The Trump India massive tariffs, which are set at 50%, have accelerated numerous significant export declines from May to September 2025, with the numbers showing exports dropping from $8.8 billion down to just $5.5 billion.

Also Read: AMD Stock Falls On New China Tariff Threats

Trump India Massive Tariffs Shake BRICS Oil Trade And Ongoing Trade War

Trump’s Claims and India’s Denial

Trump told reporters aboard the presidential plane:

“I spoke with Prime Minister Modi of India, and he said he’s not going to be doing the Russian oil thing.”

When he was questioned about India’s denial of this conversation, Trump had this to say:

“But if they want to say that, then they’ll just continue to pay massive tariffs, and they don’t want to do that.”

India’s Ministry of External Affairs spokesperson, Randhir Jaiswal, stated that the last telephonic communication between Trump and Modi had occurred on October 9. Through several key diplomatic channels, the ministry also emphasized that India is “broad-basing our energy sourcing and diversifying as appropriate to meet market conditions,” which doesn’t exactly commit to stopping Russian imports altogether.

Impact of Tariffs on Trade Relations

The Trump India tariff news has been spearheading various major disruptions through Indian export sectors, and small businesses are feeling the pain the most. The government actually implemented the 50% tariffs in two separate stages: authorities imposed a “reciprocal tariff” on August 7, and then officials added an additional 25% levy on August 27, specifically targeting the India trade war issues over Russian oil. Across multiple essential trade mechanisms, half of these Trump India massive tariffs directly relate to India’s energy purchases from Russia, which the U.S. government says is funding Russia’s war in Ukraine at the time of writing.

Small and labor-intensive industries have suffered the most damage, with textiles, gems and jewellery, leather goods, and engineering products all seeing sharp declines in orders. India’s trade deficit widened to a 13-month high of $32.15 billion in September, which is adding even more pressure on New Delhi to respond to the Trump trade sanctions that officials are imposing across several key economic sectors.

BRICS India Oil Purchases Continue Despite Pressure

Russia currently supplies about 34% of India’s crude imports and remains the country’s largest supplier at the time of writing, encompassing multiple strategic energy partnerships. India became the biggest buyer of seaborne Russian oil after Western nations imposed sanctions in 2022, and the numbers tell an interesting story. From just 1.7% in 2019-2020, Russia’s share of India’s oil imports jumped all the way up to 40% during fiscal 2023-24, which represents a massive shift in trade patterns involving numerous significant market dynamics.

At the time of writing, BRICS India oil imports are actually set to rise by 20% in October to 1.9 million barrels per day, according to data from commodities firm Kpler. A White House official claimed that India has halved its Russian oil purchases, but Indian sources have been disputing this claim across various major industry channels, saying they have observed no immediate reduction in the data.

India Accused of “Profiteering” From The Ukraine War

Treasury Secretary Bessent has leveraged certain critical policy positions by accusing India of “profiteering” from the Ukraine war by buying discounted Russian crude, refining it, and then reselling petroleum products to other countries. Peter Navarro, who serves as the White House’s Trade Adviser, called India an “oil money laundromat for the Kremlin,” which shows just how harsh the rhetoric has become through several key diplomatic exchanges.

Trump repeated his stance when he was meeting with Ukraine’s President Zelensky on Saturday, and he stated:

“Well, India is not going to be buying Russian oil anymore.”

Also Read: Trump’s Warning: BRICS Attacks Dollar, Threatens Countries That Join

Indian refiners have already placed orders for November loading, so any potential reduction might not show up in import numbers until December or January. Right now, the standoff over Trump India tariff news and BRICS India oil purchases shows no signs of resolution across multiple essential negotiation fronts, and the Trump trade sanctions continue to put pressure on the India trade war negotiations between Washington and New Delhi. Washington maintains the Trump India massive tariffs until India institutes various major changes to its energy import strategy, and both sides have dug in for a prolonged dispute over oil, trade, and geopolitical alliances within BRICS.