Trump Warns India of Higher Tariffs Over Russian Oil Imports
Trade Pressure Intensifies
President Donald Trump on Sunday warned that the United States could raise tariffs on Indian goods if New Delhi fails to reduce its purchases of Russian oil. His comments mark a renewed escalation in trade pressure as negotiations between the two countries remain unresolved.
Speaking to reporters aboard Air Force One, Trump said India’s continued trade with Russia could trigger swift US action. “Prime Minister Narendra Modi is a good guy,” Trump said. “He knew I was not happy, and it was important to make me happy. They do trade, and we can raise tariffs on them very quickly.”
India’s commerce ministry did not immediately respond to requests for comment.
Tariffs Already in Place
Trump’s remarks follow months of negotiations after the United States doubled tariffs on certain Indian imports to 50% last year. Washington imposed the measures in response to India’s heavy purchases of Russian crude oil.
Several Indian export sectors now face tariffs as high as 50%, with part of the increase directly linked to Russian oil imports.
Market Reaction
Indian financial markets reacted sharply on Monday. The information technology stock index fell around 2.5%, reaching its lowest level in more than a month. Investors expressed concern that worsening trade tensions could further delay a US-India trade agreement.
US Pressure on Oil Imports
Republican Senator Lindsey Graham, a close ally of Trump who was traveling with him, said US sanctions on Russian oil firms and higher tariffs on India have already reduced India’s oil imports from Russia.
Graham is supporting proposed legislation that would allow tariffs of up to 500% on countries, including India, that continue buying Russian oil. He argued that such purchases help finance Russia’s war effort.
“If you are buying cheap Russian oil, you keep Putin’s war machine going,” Graham said. He added that tariffs give the US president strong leverage and claimed Trump’s actions have forced India to buy “substantially less Russian oil.”
Analysts Warn of Wider Trade Risks
Trade analysts caution that India’s cautious and ambiguous approach could increase economic risks. Ajay Srivastava, founder of the Global Trade Research Initiative, said Indian exports already face a 50% US tariff, including a 25% component tied to Russian crude purchases.
“Ambiguity no longer works,” Srivastava said. He urged India to clearly define its position on Russian oil. He also warned that even a complete halt in purchases may not end US pressure and that further tariff hikes could cause deeper export losses.
Diplomatic Balancing Act
Separately, India adopted a careful diplomatic tone after the US captured Venezuelan President Nicolas Maduro on Saturday. New Delhi called for dialogue without directly naming Washington.
Despite higher tariffs, Indian exports to the United States rose in November. However, shipments fell by more than 20% between May and November 2025.
As India continues to seek a trade deal with Washington, the government has asked oil refiners to submit weekly reports on purchases of Russian and US crude. Prime Minister Modi has spoken with Trump at least three times since the tariffs were imposed. India’s commerce secretary also met US trade officials last month, but negotiations have yet to produce an agreement.
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