Trump Warns India of Higher Tariffs Over Russian Oil Purchases

Post by : Saif Nasser

The United States has once again signaled its displeasure over India’s purchase of Russian oil. U.S. President Donald Trump warned on Sunday that Washington could impose higher tariffs on Indian goods if New Delhi does not limit its oil imports from Russia.

Speaking aboard Air Force One, Trump said, “Modi is a good guy. He knew I was not happy, and it was important to make me happy.” He also added, “They do trade, and we can raise tariffs on them very quickly.” This warning comes after the U.S. doubled import tariffs on Indian goods to 50% last year as a punishment for India’s heavy reliance on Russian crude.

Despite the high tariffs, India’s exports to the U.S. actually grew in November, showing resilience in trade relations. Indian officials have maintained a firm stance, indicating limited flexibility on U.S. demands, especially in areas like agricultural imports. Meanwhile, India has been reducing its Russian oil purchases, as shown by recent data.

To monitor trade more closely, India is now asking its refiners for weekly reports on oil imports from both Russia and the United States. Officials expect Russian crude purchases to fall below one million barrels per day, partly to facilitate a potential trade agreement with Washington.

Diplomatic discussions continue but have yet to yield a resolution. Prime Minister Narendra Modi and President Trump have spoken at least three times over the phone since the tariffs were imposed, but talks remain inconclusive. Last month, India’s Commerce Secretary, Rajesh Agrawal, met U.S. Deputy Trade Representative Rick Switzer in Delhi to discuss trade and economic cooperation.

The situation highlights the growing tension between India and the United States over energy policy and trade. While both countries are important global partners, disagreements over Russian oil purchases have created a new challenge. Markets, businesses, and policymakers are now watching closely to see if a compromise can be reached or if tariff escalation will follow.

As India balances its energy needs with diplomatic and trade considerations, the outcome of these discussions will have significant implications not just for bilateral trade, but also for the global energy market.