U.S. President Donald Trump said the United States could impose higher tariffs on Indian goods if New Delhi does not address concerns related to its purchases of Russian oil. Speaking to reporters aboard Air Force One, Trump said he expected India to take steps to “make me happy” on the issue and noted Prime Minister Narendra Modi’s willingness to engage.
The U.S. had already increased tariffs on Indian imports to 50% last year in response to India’s continued purchases of discounted Russian crude. The two countries are negotiating a potential trade deal, though discussions have been challenging.
India became the world’s largest buyer of Russian seaborne crude following the outbreak of the Ukraine war in 2022. Western nations, including the U.S., have criticized these purchases, arguing that revenues from Russian oil help fund Moscow’s military operations.
Trade talks between Washington and New Delhi have stalled at times, notably in July when India resisted opening its market to U.S. agricultural products. Following this, Trump doubled the tariff rates on Indian goods in August. Negotiations have resumed, but India’s ongoing Russian oil imports remain a key point of contention.
While Trump claimed in October that Modi had promised to stop purchasing Russian oil, India has publicly maintained that imports are essential for its energy security. Stricter U.S. and EU sanctions have already reduced Russian oil flows to India, which fell to roughly 1.2 million barrels per day in December, down about 40% from a peak of 2 million barrels per day in June, according to sources and analytics firm Kpler.
