US Commerce Secretary Howard Lutnick has consistently asserted that advancement in trade relations between the United States and India is contingent on India halting its purchases of Russian oil. Lutnick has previously predicted that India would eventually "say sorry" and seek a trade deal with Donald Trump under US pressure. He highlighted that India's imports of Russian oil have surged from 1% before the Ukraine war to 40%, enabling India to purchase oil at a discounted rate, refine it, and then resell it globally for profit, a practice President Trump has labelled "nonsense". 

India, however, has strongly defended its continued import of Russian crude oil, classifying it as a matter of national interest and market strategy. New Delhi has deemed the Trump administration's tariffs, which include an additional 25% duty specifically tied to Russian oil purchases, as "unfair, unjustified, and unreasonable". India points out that its increased reliance on Russian oil stemmed from traditional suppliers diverting crude to Europe and that the previous US administration (Joe Biden's) had "actively encouraged such imports by India for strengthening global energy markets stability". 

Despite these contentious trade issues and tariffs, recent diplomatic exchanges have shown signs of a potential thaw in US-India relations. President Donald Trump described Prime Minister Narendra Modi as a "dear friend" and expressed confidence in resolving bilateral trade issues, indicating a "special relationship" between the two nations. Prime Minister Modi reciprocated this sentiment, emphasizing the "limitless potential" of the India-US partnership and expressing eagerness to conclude trade negotiations. However, India remains firm in its refusal to compromise its strategic autonomy by allowing Washington to dictate its business partners, particularly regarding Russia, a key strategic ally.