WASHINGTON/ NEW DELHI: The United States may impose even higher tariffs on Indian goods if New Delhi fails to sharply curb its purchases of Russian oil, President Donald Trump warned on Sunday, escalating pressure at a time when U.S.–India trade negotiations remain deadlocked.
Speaking to reporters aboard Air Force One, Trump said Prime Minister Narendra Modi was aware of Washington’s displeasure. “Modi is a good guy. He knew I was not happy,” Trump remarked, adding that the U.S. could “raise tariffs very quickly” if India continued buying Russian crude.
The warning comes months after Washington doubled tariffs on Indian imports to 50 percent, citing India’s heavy reliance on discounted Russian oil despite Western sanctions over the Ukraine war. India’s commerce ministry did not immediately respond to Trump’s latest remarks.
Markets reacted swiftly. On Monday, India’s information technology stocks fell around 2.5 percent, touching their lowest level in over a month, as investors feared prolonged trade friction could derail prospects of a U.S.–India trade deal.
Republican Senator Lindsey Graham, a close Trump ally travelling with the president, claimed that sanctions on Russian energy firms and punitive tariffs on India had already reduced New Delhi’s oil imports from Moscow. Graham is backing legislation proposing tariffs of up to 500 percent on countries that continue to buy Russian oil.
“If you are buying cheap Russian oil, you keep Putin’s war machine going,” Graham said, arguing that steep tariffs are meant to force countries into making a “hard choice.”
Trade analysts, however, warn that India’s cautious balancing act may be backfiring. Ajay Srivastava, founder of the Global Trade Research Initiative, noted that Indian exports already face a 50 percent U.S. tariff, with half of that directly linked to Russian oil purchases.
While Indian refiners have reduced imports following sanctions, purchases have not stopped entirely, leaving New Delhi in what Srivastava described as a “strategic grey zone.” “Ambiguity no longer works,” he said, warning that even a full halt in Russian oil imports may not end U.S. pressure, which could shift to other trade demands.
Despite the tariffs, India’s exports to the U.S. surged in November, although overall shipments dropped more than 20 percent between May and November 2025. In an effort to reassure Washington, the Indian government has reportedly asked refiners to submit weekly data on Russian and U.S. oil purchases.
Prime Minister Modi has spoken with Trump at least three times since the tariffs were imposed, and senior trade officials from both sides met last month. Yet, with negotiations still unresolved, Trump’s latest warning underscores how energy geopolitics is increasingly shaping the future of U.S.–India trade relations.
-WNN Desk, USA
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