Trump Threatens India with Higher Tariffs Over Russian Oil
US President Donald Trump threatened India with significant tariff hikes if it continues purchasing Russian oil, despite calling PM Modi a “good guy.” This comes after the US previously imposed 25% tariffs, with a senator pushing for up to 500%. While India's Russian oil imports grew due to G7 price caps, they have recently shown a 10% year-on-year decrease, partly due to US sanctions. India is also seeking a bilateral trade deal with the US for tariff relief.
US President Donald Trump issued a stern warning to India, threatening to “very quickly” impose higher tariffs if the South Asian nation continues its trade with Russia, specifically regarding oil purchases. Despite acknowledging PM Modi as a “very good guy,” Trump emphasized the importance of India aligning with US interests, particularly given the “lousy” Russian economy. This latest threat follows a 25% tariff increase imposed by the US last August, bringing existing tariffs on Indian exports to the US to one of the highest rates at 50%.Since the Russia-Ukraine conflict began in February 2022, India significantly expanded its crude oil imports from Moscow, reaching over $50 billion in the 2024-2025 financial year. This increase was largely facilitated by the G7-imposed price cap, designed to allow Russian oil sales below $60 a barrel while minimizing global energy market disruption, initially considering India's energy needs. However, with Trump's return to the White House, the US position has shifted, pushing India to buy more American energy products.Despite these pressures, Russia remains India's top crude supplier, though imports have fallen by approximately 10% year-on-year, with further reductions expected due to recent US sanctions on major Russian oil companies like Rosneft and Lukoil. Meanwhile, Senator Lindsey Graham is advocating for legislation that could enable tariffs of up to 500% on countries maintaining trade ties with Russia. India, for its part, is actively pursuing a bilateral trade deal with the US for tariff relief, signaling willingness to buy American energy but maintaining agriculture and dairy as “red lines” for negotiations. The US remains India's primary export destination, with trade showing an upward trend despite tariff imposition.
