**Modi and Trump Discuss Trade Amid Rising Tensions Over Russian Oil Purchases**
On Wednesday, Indian Prime Minister Narendra Modi and US President Donald Trump engaged in a phone call aimed at addressing ongoing trade negotiations between their two nations. The conversation comes against a backdrop of increasing US pressure on India regarding its imports of Russian oil, particularly following the recent enactment of the Lindsey O. Graham Sanctioning Russia and Iran Act.
The leaders reviewed various aspects of bilateral cooperation, including trade, defense, energy, and critical technologies. They also exchanged perspectives on regional and international issues, as noted in statements from both New Delhi and Washington.
The timing of the call is significant, occurring shortly after President Trump signed the new sanctions legislation into law on September 18. This law expands existing sanctions and introduces tariffs on goods from countries that are major purchasers of Russian crude oil and natural gas, potentially impacting India, which has been one of the largest importers of Russian energy.
While the official Indian readout of the call did not mention the new sanctions, Indian Foreign Minister S. Jaishankar had previously raised concerns about the legislation during discussions with US Secretary of State Marco Rubio in New York. The law stipulates that tariffs could reach as high as 100% on goods from countries that meet certain criteria regarding their Russian energy purchases.
India has consistently warned that sanctions targeting its energy trade with Russia could have detrimental effects on bilateral relations and could disrupt the international energy market. Despite the pressures, India has maintained its stance on diversifying its oil sourcing, emphasizing the importance of energy security.
Currently, Russia remains India's largest supplier of crude oil, although recent data indicates a decline in imports. In August, Indian imports from Russia stood at approximately 2.1 million barrels per day (bpd), but this figure is expected to decrease to around 1.75 million bpd in September. The reduction is attributed to tightening export availability and increased competition from Chinese refiners.
The Modi-Trump conversation also followed a meeting between Indian Commerce Minister Piyush Goyal and US Trade Representative Jamieson Greer, which took place during the G20 Trade Ministerial in Milwaukee. Both sides are eager to advance negotiations on the India-US Bilateral Trade Agreement (BTA), which has been in the works for several months. The framework for the first phase of the BTA was finalized in February, but subsequent US tariff pressures have prompted India to reassess the terms of the agreement.
The United States remains India's largest trading partner, with bilateral merchandise trade reaching $132.2 billion in the financial year 2025-26. Indian exports to the US accounted for $86.51 billion, while imports from the US totaled $45.62 billion, underscoring the significance of this economic relationship.
As the two leaders continue to navigate the complexities of trade and energy security, the outcome of their discussions may have lasting implications for both nations, particularly in the context of global energy markets and geopolitical dynamics.