The United States has warned it may increase tariffs on India if the country does not reduce its purchases of Russian oil, escalating pressure amid ongoing trade negotiations.
Former President Donald Trump stated that while Prime Minister Narendra Modi is “a good guy,” the U.S. could quickly impose additional tariffs on Indian goods if New Delhi continues buying Russian oil.
“They do trade, and we can raise tariffs on them very quickly,” Trump told reporters aboard Air Force One.
Background: Current Tariffs and Trade Talks
The U.S. previously doubled import tariffs on Indian goods to 50% last year, largely in response to India’s heavy purchases of Russian oil. Despite this, trade discussions between the two countries have not produced a definitive agreement.
Indian markets reacted on Monday, with the NIFTY IT index dropping around 2.5%, its lowest level in over a month, reflecting investor concerns over potential delays in a U.S.-India trade deal.
Senator Graham Supports Tough Measures
Republican Senator Lindsey Graham, a close ally of Trump, emphasized that U.S. sanctions on Russian oil and higher tariffs on India have helped reduce Indian oil imports.
Graham is backing legislation to impose tariffs up to 500% on countries, including India, that continue to buy Russian oil. He stated, “If you are buying cheap Russian oil, you keep Putin’s war machine going. Tariffs are intended to make that a hard choice.”
According to Graham, these measures have led to India buying substantially less Russian oil.
Experts Warn of Risks in India’s Approach
Trade experts caution that India’s cautious stance could weaken its negotiating position.
Ajay Srivastava, founder of the Global Trade Research Initiative, explained that Indian exports already face a 50% U.S. tariff, with 25% directly linked to Russian oil purchases.
While Indian refiners have reduced imports after sanctions, purchases have not stopped completely, placing India in a “strategic grey zone.” Srivastava urged New Delhi to clarify its position on Russian oil to avoid deeper trade losses, noting that even a full halt may not end U.S. pressure.
Diplomatic and Trade Developments
India has maintained a cautious diplomatic stance, urging dialogue after the U.S. captured Venezuela’s President Nicolas Maduro, without directly criticizing Washington.
Despite high tariffs, India’s exports to the U.S. rose in November 2025, although shipments fell over 20% between May and November. To address U.S. concerns and facilitate a trade deal, the Indian government has requested weekly disclosures from refiners on both Russian and U.S. oil purchases.
Conclusion
The U.S. threat of higher tariffs underscores the delicate balance in U.S.-India trade relations. As India navigates its stance on Russian oil imports, both countries face a strategic moment that could shape future trade and diplomatic ties.
