The Indian government has firmly reiterated its position on energy sourcing policies, signaling continued oil imports from Russia despite facing the threat of a proposed 500% US tariff. President Donald Trump backed the bill on January 8, targeting India, China, and other countries purchasing Russian oil.

Government Response to Tariff Threat

MEA spokesperson Randhri Jaiswal acknowledged awareness of the proposed legislation while reaffirming India's energy strategy. "We are aware of the proposed bill. We are closely following the developments," Jaiswal stated in response to a CNBC-TV18 query.

The spokesperson emphasized India's commitment to energy security for its massive population. "Our position on the larger question of energy sourcing is well known. We are guided by the evolving dynamics of the global market and by the imperative to secure affordable energy from diverse sources to meet the energy security needs of our 1.4 billion people," Jaiswal explained.

Current Tariff Impact

India is already facing financial consequences for its Russia ties, currently paying substantial penalties on energy and defense purchases.

Trade Deal Negotiations Clarification

The MEA strongly rejected claims made by US Commerce Secretary Howard Lutnick, who blamed Modi for stalled trade negotiations. Lutnick had claimed in a podcast that the trade deal failed because Modi did not call Trump, stating: "Let's be clear, it's his (Trump's) deal. He is the closer. He does it. It's all set up, you've got to have Modi, call the President. They were uncomfortable doing it. So, Modi didn't call."

The MEA spokesperson countered these characterizations as inaccurate. "We have been committed to trade negotiations with US as far as back as 13th of February last year. We have held multiple discussions on a fair and mutually beneficial bilateral trade deal. The way the status of talks have been characterised in the statements is not accurate," he stated.

Diplomatic Engagement

The ministry highlighted ongoing high-level diplomatic communication between the two nations, noting that Trump and Modi have spoken on eight occasions in 2025 on various issues. This contradicts Lutnick's suggestion of limited communication between the leaders.

The MEA emphasized that trade negotiations have come close to finalizing on several occasions, indicating active engagement rather than the stalled process suggested by the US Commerce Secretary's comments.

India's Ministry of External Affairs has confirmed that Prime Minister Narendra Modi and US President Donald Trump maintained regular communication throughout 2025, speaking eight times during the year. This clarification comes amid claims by US Commerce Secretary Howard Lutnick regarding the stalled India-US trade deal negotiations.

MEA Confirms Regular Modi-Trump Communication

MEA spokesperson Randhir Jaiswal addressed the diplomatic communications during a media briefing on January 9, emphasizing the strong bilateral relationship between the two leaders.

"Prime Minister Modi and President Trump have a friendly relationship and have always addressed each other with mutual respect as per diplomatic norms," Jaiswal stated. The conversations covered different aspects of the comprehensive India-US partnership.

US Commerce Secretary's Trade Deal Claims

Lutnick provided detailed insights into the trade deal negotiations during an interview with the 'All-in Podcast' on Thursday, explaining the US approach to international trade agreements. He described Trump's negotiation strategy as resembling a "staircase" where the first country to complete negotiations receives the best terms.

According to Lutnick's account, India was given a three-Friday deadline to finalize the trade agreement:

• India was initially positioned to secure favorable terms after the UK deal
• The US set a three-Friday deadline for completion
• India was reportedly "uncomfortable" with having Modi call Trump directly
• After the deadline passed, the US proceeded with other countries

"We told India, 'you have three Fridays'. Well, they have to get it done," Lutnick explained. He noted that while he negotiates the contracts and sets up deals, Trump serves as "the closer" who finalizes agreements.

Impact on Trade Deal Timeline

Following India's missed deadline, the US announced trade deals with Indonesia, Philippines, and Vietnam. Lutnick indicated these subsequent agreements were negotiated at higher rates, affecting India's position in future negotiations.

"India just was on the wrong side of the seesaw, and it was just they couldn't get it done," Lutnick remarked, describing the timing challenges that affected the negotiations.

Current Status and Future Prospects

Despite the setbacks described by Lutnick, India maintains its commitment to securing a mutually beneficial trade agreement. The MEA spokesperson emphasized the country's continued interest in concluding negotiations.

"We remain interested in a mutually beneficial trade deal between two complementary economies and look forward to concluding it," Jaiswal stated. The bilateral trade pact discussions have progressed through six rounds of negotiations, including framework discussions to resolve the 50% tariffs on Indian goods entering the US market.

Lutnick acknowledged the complexity of international trade agreements, noting that each country faces "deep internal politics" and parliamentary approval processes that can complicate negotiations. He expressed confidence that "India will work it out" despite the current challenges in the negotiation timeline.