Trump warns of higher tariffs on India over Russian oil purchases

Trump’s remarks follow months of talks after the US doubled tariffs on Indian goods over Russian oil.

The United States could raise tariffs on India if New Delhi does not curb purchases of Russian oil, President Donald Trump said on Sunday, escalating pressure on the South Asian country as trade talks remain inconclusive.

Trump said India could face higher tariffs over Russian oil purchases.

Senator Lindsey Graham said US pressure has reduced India’s Russian oil imports.

Certain Indian exports already face US tariffs of up to 50%.

Analysts warn India’s ambiguous stance risks deeper trade fallout.

“(Prime Minister Narendra) Modi is a good guy. He knew I was not happy, and it was important to make me happy,” Trump told reporters aboard Air Force One. “They do trade, and we can raise tariffs on them very quickly,” he added.

India’s commerce ministry did not immediately respond to a request for comment.

Market reaction

Trump’s remarks follow months of trade negotiations after the US doubled import tariffs on Indian goods to 50% last year in response to heavy purchases of Russian oil.

Indian markets reacted on Monday, with the information technology stock index falling about 2.5% to its lowest level in over a month, as investors worried that strained trade relations could further delay a US.-India trade deal.

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US pressure

Republican Senator Lindsey Graham, a close Trump ally traveling with him, said U.S. sanctions on Russian oil companies and higher tariffs on India had helped curb Indian oil imports.

Graham is backing legislation to impose tariffs of up to 500% on countries, including India, that continue buying Russian oil.

“If you are buying cheap Russian oil, (you) keep Putin's war machine going,” he said, adding that U.S. tariffs are designed to give the president leverage. Trump’s actions, Graham said, were the main reason India was buying “substantially less Russian oil.”

Analysts warn of risks

Trade experts caution that India’s cautious approach could weaken its position. Ajay Srivastava, founder of trade think tank Global Trade Research Initiative, said Indian exports already face a 50% US tariff, 25% linked to Russian crude purchases.

“Ambiguity no longer works,” Srivastava said, urging India to clearly state its stance on Russian oil. He warned that even a full halt may not end U.S. pressure and that higher tariffs could trigger deeper export losses.

Diplomatic caution

Separately, India adopted a cautious diplomatic stance after the US captured Venezuela's President Nicolas Maduro on Saturday, urging dialogue without explicitly naming Washington.

Despite steep tariffs, India’s exports to the US jumped in November, though shipments fell more than 20% between May and November 2025.

As New Delhi seeks a trade deal with Washington, the government has asked refiners to provide weekly disclosures of Russian and US oil purchases. Modi has spoken to Trump at least three times since the tariffs were imposed. India’s commerce secretary met US trade officials last month, but talks remain unresolved.