'No trade talks with India until...': Trump rules out dialogue as tariff standoff deepens

U.S.-India trade ties have hit rock bottom as President Donald Trump formally suspended negotiations with New Delhi after doubling tariffs to 50% on Indian imports, citing India’s ongoing oil trade with Russia.

Asked whether trade talks could resume following the tariff hike, Trump responded bluntly: “No, not until we get it resolved.” His statement came just hours after the White House signed an executive order imposing an additional 25% tariff on Indian goods, effective August 27.

The administration cited national security grounds, calling India’s Russian oil purchases—whether direct or via intermediaries—an “unusual and extraordinary threat” that warranted emergency economic measures.

The first tranche of tariffs took effect August 7. Together, the two rounds impact nearly all Indian exports to the U.S., excluding only items in transit or under special exemptions.

Prime Minister Narendra Modi pushed back hard. Speaking in New Delhi, he declared, “India will never compromise on the interests of farmers, fishermen and dairy farmers... I know we will have to pay a heavy price for it, and I am ready for it. India is ready for it.”

India’s Ministry of External Affairs echoed Modi, calling the tariffs “unfair, unjustified and unreasonable.” It argued that India's energy imports are based on economic necessity, not geopolitics.

“This is about sovereignty,” a senior Indian official said privately, pointing to U.S. leniency toward other Russian oil buyers like China and Turkey. While India faces fresh penalties, the U.S. continues a tariff pause with Beijing set to expire August 12.

The fallout has drawn in Moscow and Beijing. China’s Foreign Minister Wang Yi called the U.S. order a breach of international law. Russia, meanwhile, reaffirmed its support during NSA Ajit Doval’s recent meeting with President Vladimir Putin in Moscow, where a state visit to India was confirmed.