President Donald Trump warned on Sunday that the United States could impose new tariffs on India if New Delhi does not reduce its purchases of Russian oil, adding fresh pressure to ongoing trade talks between the two countries.
Trump made the comments aboard Air Force One, linking his personal dissatisfaction to India's energy decisions.
"(Prime Minister Narendra) Modi is a good guy. He knew I was not happy, and it was important to make me happy," Trump said.
He added, "They do trade, and we can raise tariffs on them very quickly, and it would be very bad for them."
The remarks follow months of negotiations after the US doubled import tariffs on Indian goods to 50% last year as punishment for the country's continued purchases of Russian crude.
Indian markets reacted on Monday, with the information technology stock index falling roughly 2.5% to its lowest in more than a month, reflecting investor concerns about prolonged trade friction, Reuters reported.
Senator Lindsey Graham, a close Trump ally traveling with the president, said sanctions on Russian oil companies and higher tariffs on India had already contributed to a significant drop in Indian oil imports.
"If you are buying cheap Russian oil, (you) keep Putin's war machine going," Graham said.
He is backing legislation that could impose tariffs of up to 500% on countries that continue to buy Russian oil, including India.
Trump warns the U.S. could raise tariffs on India if New Delhi doesn’t help address Russian oil trade, tying India’s continued imports of Russian crude to potential tariff increases amid strained U.S.–India trade talks. pic.twitter.com/IaORfEBT5a
— Sapna Madan (@sapnamadan) January 5, 2026
Experts Say India's Trade Position Weakens
Trade experts warn that India's cautious stance risks weakening its negotiating position.
Ajay Srivastava, founder of the Global Trade Research Initiative, said Indian exports already face steep tariffs, with 25% tied to Russian oil purchases.
"Ambiguity no longer works," he said, noting that even a complete halt of Russian oil imports may not fully satisfy US demands.
Despite tensions, India has taken measured steps to ease US concerns.
Refiners have cut imports of Russian crude, and the government now requires weekly reporting of both Russian and US oil purchases.
Modi has spoken with Trump at least three times since tariffs were imposed, and India's commerce secretary recently met US trade officials, though discussions remain unresolved, IndiaTV reported.
Trump also criticized broader global economic conditions, highlighting struggles in Russia and Venezuela.
"The Russian economy is lousy. But what's really lousy is the Venezuelan economy. The Venezuelan economy is, I think, the worst economy I've ever seen," he said.
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