NEW DELHI, Jan 5 : The United States may increase tariffs on India if New Delhi doesn’t meet Washington’s demand to curb purchases of Russian oil, President Donald Trump mentioned on Sunday, escalating strain on the South Asian nation as commerce talks stay inconclusive.
“(Prime Minister Narendra) Modi is a good guy. He knew I was not happy, and it was important to make me happy,” Trump advised reporters aboard Air Force One.
“They do trade, and we can raise tariffs on them very quickly,” Trump mentioned in response to a query on India’s Russian oil purchases.
India’s commerce ministry didn’t instantly reply to a request for remark.
Trump’s feedback observe months of commerce negotiations after the U.S. doubled import tariffs on Indian items to 50 per cent final yr as punishment for its heavy shopping for of Russian oil.
Indian markets reacted on Monday, with the data expertise stock index falling about 2.5 per cent to its lowest in additional than a month, as traders fearful that strained commerce relations may additional delay a U.S.-India commerce deal.
Republican Senator Lindsey Graham, an in depth Trump ally travelling with him, mentioned U.S. sanctions on Russian oil firms and better tariffs on India had helped curb Indian oil imports.
Graham is backing laws to impose tariffs of as much as 500 per cent on international locations equivalent to India that proceed to purchase Russian oil.
“If you are buying cheap Russian oil, (you) keep Putin’s war machine going,” he mentioned, including that “we are trying to give the President ability to make that a hard choice by tariffs.”
Trump’s actions have been the principle causes India was now shopping for “substantially less Russian oil,” Graham mentioned.
Trade consultants warn, nonetheless, that New Delhi’s cautious method dangers weakening its place.
Ajay Srivastava, founding father of commerce assume tank Global Trade Research Initiative, mentioned Indian exports already face a 50 per cent U.S. tariff, with 25 per cent linked to purchases of Russian crude.
While Indian refiners have minimize imports after sanctions, he mentioned, shopping for has not stopped completely, leaving India in a “strategic grey zone.”
“Ambiguity no longer works,” Srivastava mentioned, urging India to obviously state its stance on Russian oil. He warned that even an entire halt might not finish U.S. strain, which may shift to different commerce calls for, and that greater tariffs threat deeper export losses.
Separately, India struck a cautious diplomatic stance after the United States captured Venezuela’s President Nicolas Maduro on Saturday, urging dialogue with out explicitly naming Washington.
Despite steep tariffs, India’s exports to the U.S. leapt in November, although shipments fell greater than 20 per cent between May and November 2025. As New Delhi seeks to clinch a commerce cope with Washington, the federal government has requested refiners for weekly disclosures of Russian and U.S. oil purchases to deal with U.S. issues.
Modi has spoken to Trump at the least 3 times because the tariffs have been imposed. India’s commerce secretary met U.S. commerce officers final month, however talks stay unresolved.