Trump Signals New Tariff Threat to India Over Russian Oil Purchases

US President Donald Trump has once again placed India under trade pressure, warning that tariffs on Indian exports could be increased further if New Delhi does not align with Washington on the Russian oil question. The statement has revived concerns in India's policy and business circles, especially as exporters are still absorbing the impact of 50% import duties imposed by the US in August 2025.

Trump's remarks came during a briefing that focused largely on global oil politics following the detention of Venezuelan leader Nicolas Maduro. While outlining Washington's posture on energy and security, Trump linked India's oil purchases from Russia to a wider geopolitical effort aimed at constraining Moscow's war economy.

"We can raise tariffs very quickly"

In unusually direct language, Trump referred to Prime Minister Narendra Modi by name, offering personal praise while underscoring dissatisfaction with India's continued engagement with Russian energy suppliers.

"He knew I was not happy... They do trade, and we can raise tariffs on them very quickly," Trump said, according to an official audio release. He later reinforced the message, saying tariff hikes remain an option if India does not assist the US on Russian oil.

For Indian exporters, the warning is not abstract. The US had already doubled duties on Indian goods to 50% last August, a move widely interpreted as punishment for India's refusal to curb Russian crude imports despite sustained diplomatic pressure.

Conflicting accounts over Modi-Trump discussions

The latest threat also reopens an unresolved dispute over what was actually discussed between Trump and Modi last year. In October 2025, Trump publicly claimed that Modi had assured him India would stop purchasing Russian oil, declaring that India would buy "no oil" from Moscow.

Indian officials swiftly pushed back, saying no such commitment was made and describing Trump's remarks as a mischaracterisation of bilateral discussions. New Delhi has consistently maintained that it does not negotiate energy sourcing under external pressure.

Why Russian oil matters to India

Russia has emerged as India's largest crude supplier, largely because discounted pricing has helped cushion domestic fuel costs. Indian authorities argue that oil procurement decisions are commercial, not ideological, and are designed to protect consumers in a volatile global market.

Washington, however, views the trade differently. US officials have repeatedly argued that revenue from Russian oil sales - including exports to India - helps sustain Moscow's military operations in Ukraine. Some within the Trump administration have gone further, accusing India of benefiting financially by refining Russian crude and exporting petroleum products, allegations India has rejected.

Tariffs as a geopolitical tool

The August 2025 tariff hike marked a sharp escalation in how the US used trade policy as leverage over energy diplomacy. While officially framed as part of a broader sanctions strategy, the move also signalled Washington's frustration with India's refusal to fall in line with Western oil restrictions.

Now, Trump's renewed warning suggests that trade pressure remains very much on the table, even as India and the US continue negotiations on market access, technology cooperation and defence ties.

This is despite both sides repeatedly highlighting cooperation in defence, technology and regional security.

While Trump has spoken of a "special relationship" with Modi and said he would "always be friends" with the Indian leader, the core disagreements over Russian oil purchases and trade policy remain unresolved, keeping the risk of renewed economic friction firmly on the table.