The strained communication coincides with the imposition of a 50% tariff by the Trump administration on Indian exports, including a 25% penalty linked to India's continued purchase of discounted Russian oil. This move has significantly strained bilateral relations, with India denouncing the tariffs as "unfair, unjustified, and unreasonable." The Indian government has vowed to continue its oil deals with Russia and has encouraged citizens to support domestically produced goods.
The tariff escalation has disrupted key sectors, including textiles, gems, jewelry, and seafood, while sparing items like smartphones. Indian exporters fear losing competitiveness against countries with lower tariffs, and production cuts are already taking place. Despite growing frustration, both nations maintain communication, but trust and long-term strategic ties are now at risk.