US President Donald Trump said the United States is nearing an agreement with China to extend their current trade truce, even as he moved to significantly raise tariffs on Indian exports in response to New Delhi’s continued purchases of Russian oil, a decision that has drawn sharp criticism from India.

In a post on social media Monday, Trump accused India of profiting from the war in Ukraine by purchasing large volumes of Russian oil and reselling it on global markets.

“India is not only buying massive amounts of Russian Oil, they are then, for much of the Oil purchased, selling it on the Open Market for big profits,” Trump wrote. “They don’t care how many people in Ukraine are being killed by the Russian War Machine. Because of this, I will be substantially raising the Tariff paid by India to the USA.”

While Trump did not provide details on the scale of the new tariff hike, his comments come just a week after announcing a 25% tariff on Indian goods, one of the steepest rates applied to any major economy. He also warned of further penalties should India continue its oil trade with Moscow.

More optimistic tone on China

On the China front, however, Trump struck a more optimistic tone. In an interview for CNBC, he said the US was “getting very close to a deal” with Beijing to extend a temporary trade ceasefire that has helped stabilize relations and ease restrictions on exports, including rare earth magnets and select technologies.

“It’s not imperative, but I think we’re going to make a good deal,” Trump said, adding that current US-China relations are “very good". Still, he played down the likelihood of an imminent meeting with Chinese President Xi Jinping, suggesting such a meeting would only occur if negotiations reached a final stage.

“I’ll end up having a meeting before the end of the year, most likely, if we make a deal,” he said. “If we don’t make a deal, I’m not going to have a meeting.” He noted the long travel time involved: “It’s a 19-hour flight, it’s a long flight, but at some point in the not too distant future, I will.”

The current truce between Washington and Beijing is set to expire on August 12. The initial agreement reduced fears of a renewed tariff war between the world’s two largest economies and opened the door to discussions on broader issues, including US tariffs tied to fentanyl trafficking.

Last week, US Treasury Secretary Scott Bessent met with Chinese Vice Premier He Lifeng in Stockholm for the third round of bilateral trade talks in under three months, signaling continued momentum in negotiations.