Could Raise Tariffs on India , Trump’s Fresh Warning Over Russian Oil Trade
January 05, 2026 08:05 PM IST

Could Raise Tariffs on India , Trump’s Fresh Warning Over Russian Oil Trade

Desk Correspondent , Washington D.C - U.S. President Donald Trump has issued a blunt new warning to India, stating that the United States could further increase tariffs on Indian imports if New Delhi does not resolve the "Russian oil issue." Speaking during a briefing on Monday, Trump mentioned his personal relationship with Prime Minister Narendra Modi, calling him a "good guy" but emphasizing that it was "important to make me happy." The President noted that the U.S. has the capability to raise tariffs "very quickly" if India continues to act as a major buyer of Russian crude. This follows a significant move in August 2025, when the Trump administration doubled tariffs on Indian goods to 50% as a direct consequence of India's ongoing energy trade with Russia.

The Trump administration argues that Russia uses the proceeds from these oil sales to fund its military offensive in Ukraine, and officials have alleged that India is "profiteering" from the conflict. While Trump had previously claimed in late 2024 that PM Modi "assured" him India would stop the purchases, Indian officials have consistently denied making such a promise, maintaining that their energy policy is driven by the needs of the Indian consumer and national security. The potential for another tariff hike adds a fresh strain to the diplomatic and trade ties between the two nations, which have experienced a mix of strategic cooperation and economic friction under the "America First" policy.

In conclusion, this escalating trade tension underscores the current U.S. administration's strategy of using economic leverage to achieve geopolitical goals. By linking trade tariffs to foreign policy regarding Russia and Ukraine, President Trump is forcing a high-stakes decision for the Indian government. Whether this leads to a reduction in India's Russian oil imports or a further deterioration in trade relations remains a pivotal question for the Indo-U.S. alliance. The world now watches to see if New Delhi will pivot its energy strategy or risk a full-scale trade war with its largest trading partner.

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