Despite a 25% US tariff on India for importing Russian oil, Trump and Putin demand closer economic relations during the Alaska Summit

Following his meeting with US President Donald trump in Alaska, Russian President Vladimir putin stated on Friday that bilateral trade between Washington and Moscow “holds tremendous potential” and “started to grow” after Trump took office in January. Trump said at the joint media briefing that he was “looking forward to dealing” with Russian business executives discussing the crisis in Ukraine during the summit.

These comments about deepening economic links between the US and Russia follow the Trump administration’s 25% “penalty” tariff on India for purchasing Russian petroleum.

By the way, our bilateral trade has increased under the new US government. Even though it is only a symbolic number at this point, the trade is 20% higher. I’m trying to emphasize that there are a lot of intriguing areas where we can work together,” Putin stated.

After Trump took office on January 20, bilateral goods commerce between the two nations increased by 38% year over year to $2.5 billion between February and June 2025, according to data from the US International commerce Commission (ITC).

“It is clear that there is a lot of promise in the economic and investment collaboration between the US and Russia. In the areas of trade, energy, digital and advanced technologies, and space development, Russia and the US have a lot to offer one another, Putin stated.

“We also have some fantastic Russian business representatives here, and I think, you know, everybody wants to deal with us,” Trump said in his statement. In a relatively short time, we have risen to the top of the global heat rankings. We are eager to deal with that, and we will make every effort to conclude this matter.

US exports to Russia increased 21% to $249 billion between February and June 2025, while US imports from Russia increased 40% year-over-year (y-o-y) to $2.3 billion. According to USITC figures, the US trade imbalance increased 43% year over year to over $2 billion.

Fertilizers, uranium, and palladium accounted for the majority of US imports from Russia and were the main drivers of the import boom following the Trump administration. Pharmaceuticals and medical equipment accounted for the majority of U.S. exports to Russia.

US merchandise imports from Russia dropped to $3 billion in customs value in 2024, two years after the start of the war in Ukraine, which is 90% less than in 2021, the year prior to the crisis.

The United States imported approximately $30 billion worth of goods from Russia in 2021. After the war in Ukraine started in February 2022, this was cut in half to $14 billion. Imports then fell to $4.6 billion in 2023, before settling at $3 billion in 2024.

Trade between the US and Russia is not a “vital national compulsion.”

Following President Trump’s August 6 imposition of a 25% penalty tax on India for purchasing Russian oil, US-Russian commerce has come under scrutiny. The action was denounced as “unfair, unjustified, and unreasonable” by India. A 25% “reciprocal” tariff on Indian imports was previously levied by the White House in July.

India started purchasing oil from Russia in the days preceding August 6, according to the Ministry of External Affairs (MEA), “because traditional supplies were diverted to Europe after the outbreak of the conflict.” “The United States at that time actively encouraged such imports by India for strengthening global energy markets stability,” it said.

India’s purchases of Russian oil are a “necessity compelled by global market situation,” according to the MEA. The fact that the same countries that are criticizing India are also engaging in commerce with Russia, however, is illuminating. Such trade is not even a crucial national compulsion, in contrast to our situation,” the statement read.