U.S. Pressures India Amid Ongoing Trade Talks
The United States has warned that it could impose higher tariffs on India if New Delhi does not limit its purchases of Russian oil, according to former President Donald Trump. The remarks come amid ongoing but inconclusive U.S.-India trade negotiations, intensifying pressure on the South Asian nation.
Trump told reporters aboard Air Force One, “Prime Minister Modi is a good guy. He knew I was not happy, and it was important to make me happy.” He added that the U.S. could quickly raise tariffs on Indian goods in response to the country’s continued Russian oil imports.
India’s commerce ministry did not respond immediately to requests for comment.
Background: Trade Tensions and Previous Tariffs
In 2025, the U.S. doubled import tariffs on Indian goods to 50%, partly as a response to India’s heavy buying of Russian crude oil. This move triggered concerns in Indian markets, with the IT stock index (.NIFTYIT) falling 2.5% on Monday, reaching its lowest level in over a month. Investors worry that strained relations could delay a U.S.-India trade deal further.
Senator Graham Supports Stronger Measures
Republican Senator Lindsey Graham, a close Trump ally traveling with him, stated that U.S. sanctions on Russian oil and higher tariffs on India have reduced Indian oil imports. He is backing legislation to impose tariffs of up to 500% on countries like India that continue to buy Russian oil.
Graham emphasized, “If you are buying cheap Russian oil, you keep Putin’s war machine going,” and noted that the aim is to provide the President with tools to make a hard choice through tariffs. He added that India is now importing substantially less Russian oil than before.
Experts Warn of Strategic Risks for India
Despite cuts in imports, Indian refiners have not completely stopped buying Russian oil. Experts warn that India’s cautious and ambiguous approach could weaken its trade position.
Ajay Srivastava, founder of the Global Trade Research Initiative, highlighted that Indian exports already face a 50% U.S. tariff, with 25% tied to Russian crude purchases. He stated that India’s strategic gray zone could lead to deeper trade losses if ambiguity persists.
India Takes a Cautious Diplomatic Approach
Amid these tensions, India has maintained a careful diplomatic stance, especially after the U.S. captured Venezuela’s President Nicolas Maduro. New Delhi urged dialogue and diplomacy without directly mentioning Washington.
While India’s exports to the U.S. rose in November, shipments fell over 20% between May and November 2025. To address U.S. concerns, the government has asked refiners for weekly disclosures of Russian and U.S. oil purchases, signaling its intent to keep trade negotiations on track.
Conclusion
The U.S.-India trade relationship faces heightened scrutiny as Washington pressures New Delhi to curb Russian oil imports. Analysts warn that higher tariffs and strategic ambiguity could negatively affect India’s exports. Clear policy decisions will be crucial for India to safeguard its trade interests while navigating complex international energy and diplomatic dynamics.
