External Affairs Minister S Jaishankar on Monday met Iowa Governor Kim Reynolds in New Delhi and held discussions on the scope of India–US relations and the opportunities for economic cooperation. Sharing pictures from the meeting on social media platform X (formerly Twitter), Jaishankar said the talks focused on further strengthening bilateral economic ties.

“Discussed India-US economic ties and its potential,” Jaishankar wrote, highlighting the significance of the meeting in the backdrop of rising trade tensions between the two countries.

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US tariffs on Indian imports

The meeting comes at a sensitive time, as the United States recently imposed a 50 per cent tariff on Indian goods. Of this, 25 per cent has been termed a “penalty” for India’s continued purchase of crude oil from Russia. US President Donald Trump has accused India of indirectly funding the Ukraine war through these purchases.

In response, Union Finance Minister Nirmala Sitharaman on Friday reaffirmed that India will continue to import Russian oil, insisting that the country’s decisions will be based on national interest. 

“Whether it is Russian oil or anything else, we will take a call based on what suits our needs in terms of rates, logistics or whatever,” she said in an interview with News18.

Oil imports a key part of India’s economy

Sitharaman stressed that crude oil remains the single largest component of India’s import bill, making decisions around sourcing crucial for the country’s economy. “We will undoubtedly be buying Russian oil,” she added.

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Meanwhile, President Trump has warned that the US could still roll out “Phase-2” and “Phase-3” tariffs against countries that maintain trade ties with Russia. He described the secondary sanctions on India as a way to directly hurt Russia financially, saying, “that costs hundreds of billions of dollars to Russia.”

Debate over US strategy on Russia

Trump’s comments came amid growing questions on why his administration has not taken more direct action against Russia since he assumed office in January this year. He maintained that targeting trade partners like India serves as a broader strategy to weaken Russia’s economic base.