Trump warns of higher tariffs on India over Russian oil purchases
Encouraged by the improved trade data, Indian officials have maintained a firm stance against US trade demands
[NEW DELHI] The United States could raise tariffs on India if New Delhi does not meet Washington’s demand to curb purchases of Russian oil, President Donald Trump said on Sunday (Jan 4), escalating pressure on the South Asian country as trade talks remain inconclusive.
“(Prime Minister Narendra) Modi is a good guy. He knew I was not happy, and it was important to make me happy,” Trump told reporters aboard Air Force One.
“They do trade, and we can raise tariffs on them very quickly,” Trump said in response to a question on India’s Russian oil purchases.
India’s commerce ministry did not immediately respond to a request for comment.
Trump’s comments follow months of trade negotiations after the US doubled import tariffs on Indian goods to 50 per cent last year as punishment for its heavy buying of Russian oil.
Indian markets reacted on Monday, with the information technology stock index falling about 2.5 per cent to its lowest in more than a month, as investors worried that strained trade relations could further delay a US-India trade deal.
Republican Senator Lindsey Graham, a close Trump ally travelling with him, said US sanctions on Russian oil companies and higher tariffs on India had helped curb Indian oil imports.
Graham is backing legislation to impose tariffs of up to 500 per cent on countries such as India that continue to buy Russian oil.
“If you are buying cheap Russian oil, (you) keep Putin’s war machine going,” he said, adding that “we are trying to give the President ability to make that a hard choice by tariffs.”
Trump’s actions were the main reasons India was now buying “substantially less Russian oil,” Graham said.
Trade experts warn, however, that New Delhi’s cautious approach risks weakening its position.
Ajay Srivastava, founder of trade think tank Global Trade Research Initiative, said Indian exports already face a 50 per cent US tariff, with 25 per cent linked to purchases of Russian crude.
While Indian refiners have cut imports after sanctions, he said, buying has not stopped entirely, leaving India in a “strategic grey zone.”
“Ambiguity no longer works,” Srivastava said, urging India to clearly state its stance on Russian oil. He warned that even a complete halt may not end US pressure, which could shift to other trade demands, and that higher tariffs risk deeper export losses.
Separately, India struck a cautious diplomatic stance after the US captured Venezuela’s President Nicolas Maduro on Saturday, urging dialogue without explicitly naming Washington.
Despite steep tariffs, India’s exports to the US leapt in November, though shipments fell more than 20 per cent between May and November 2025. As New Delhi seeks to clinch a trade deal with Washington, the government has asked refiners for weekly disclosures of Russian and US oil purchases to address US concerns.
Modi has spoken to Trump at least three times since the tariffs were imposed. India’s commerce secretary met US trade officials last month, but talks remain unresolved. REUTERS
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