US President Donald Trump on Monday (India time) warned that Washington could raise tariffs on Indian imports if New Delhi does not stop purchasing Russian oil, signalling continued pressure on India over its energy ties with Moscow.
Speaking to reporters aboard Air Force One, Trump said India had sought to placate him on the issue. “They wanted to make me happy, basically. Modi is a very good man; he is a good guy. 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. It would be very bad for them,” Trump said.
Since August, the US has imposed a 50 per cent tariff on several Indian imports, of which 25 per cent is directly linked to India’s purchase of Russian oil. Over the past year, India and the US have been pursuing two parallel tracks—one aimed at a comprehensive bilateral trade agreement, and another focused on a framework trade deal to address the burden of the 50 per cent tariff on Indian exporters.
Government officials in New Delhi have said that a trade deal will be difficult to finalise unless the US removes the 25 per cent punitive tariff. Despite talks continuing for the past nine months and more than half a dozen rounds of formal and informal negotiations, no breakthrough has been achieved so far.
Trump’s remarks followed comments by US Senator Lindsey Graham, who was travelling with him on Air Force One. Graham said the tariffs imposed by the Trump administration were the “chief reason” India has begun buying substantially less Russian oil. He added that the US is pushing legislation to impose steep secondary tariffs on countries purchasing Russian oil and gas if Moscow fails to agree to a ceasefire in Ukraine within 50 days.
“…so if you want to end this conflict, then put pressure on Putin’s customers. We sanctioned the two largest oil companies in Russia, which is the biggest pressure anyone put on Putin since the war started…we put a 25 per cent tariff on India for buying Russian oil,” Graham said.
He also claimed that Indian officials have conveyed their concerns about the tariffs. “I was at the Indian ambassador’s house about a month ago and all he wanted to talk about was how they’re buying less Russian oil. Would you tell the President to reduce tariffs? This stuff works,” Graham said.
Ajay Srivastava, former trade ministry official and founder of the Global Trade Research Initiative (GTRI), said that after US sanctions imposed in October on Rosneft and Lukoil, major refiners including Reliance Industries and several state-run companies indicated they would halt purchases of Russian oil to avoid secondary sanctions. However, imports have not stopped completely, with lower volumes continuing.
“This approach may be weakening India’s position,” Srivastava said, adding that India needs greater clarity in its stance. He noted that if New Delhi plans to stop Russian oil imports, it should do so decisively, while if it intends to continue buying from non-sanctioned suppliers, it should state that openly and support it with data. He also cautioned that even a complete halt in Russian oil imports may not end US pressure, which could then shift to areas such as agriculture, dairy, digital trade and data governance.