Prime Minister Narendra Modi and US President Donald Trump on Wednesday held their first-ever telephone conversation since the latter signed into law a sanctions bill to impose up to 100 per cent tariffs on countries buying Russian oil and gas.
The two leaders discussed India-US bilateral cooperation in trade, defence, energy, critical technologies, and other areas.
“We agreed to maintain close engagement to take our Comprehensive Global Strategic Partnership forward,” PM Modi wrote in an X post, adding that the two leaders had also exchanged views on other regional and international issues—including ongoing efforts to advance global peace and security.
The looming tariff threat
The "productive" conversation between the two leaders comes weeks after Trump signed the Lindsey O. Graham Sanctioning Russia and Iran Act of 2026 on September 18, which is all set to go into effect within 30 days from the day it was signed.
The law also expands the scope of sanctions on Russia's energy and defence sectors, especially Moscow's 'shadow fleet' and other entities that it alleges are involved in sanctions evasion.
With the law also expected to punish the top five buyers of Russian energy—based on volumes in the 12 months before the legislation was enacted—India and China find themselves in the firing line.
However, the legislation does not name the countries that will ultimately be targeted, giving the Trump administration some leeway to determine which nations qualify for its tariffs, and what rates they may face.
As it has done multiple times before in the face of tariff threats linked to the Russia-Ukraine war, India has since reiterated that it remains firmly committed to ensuring energy security for its 1.4 billion people.
"It will continue to do so through diversified sourcing and on the basis of evolving market dynamics ... This issue has been discussed at high levels in recent months with various US interlocutors. Its potential implications for not just the bilateral relationship but also the international energy market have been very clearly articulated by the Indian side," the Ministry of External Affairs (MEA) said in a statement.
