resident Donald Trump warned of new tariffs on Indian goods if concerns over India’s Russian oil purchases persist. Despite resumed talks with Prime Minister Narendra Modi, trade negotiations remain strained. India defends energy security while sanctions bite, pushing imports lower.
Trump Warns Fresh Tariffs on India Over Russian Oil Purchases
Washington DC: US President Donald Trump has hinted that if India does not address Washington's concerns about purchasing crude oil from Russia, fresh tariffs on Indian products could be raised. Speaking to reporters aboard Air Force One, Trump said, "They wanted to please me. Prime Minister Narendra Modi is a very nice person. He knew I wasn't happy. We can raise tariffs very quickly."
The United States has long sought to reduce its trade deficit with India. Last year, the US raised tariffs on Indian imports to 50 percent, citing continued purchases of Russian oil. The two countries are negotiating a potential trade agreement, but talks have repeatedly stalled.
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After the Ukrainian war, India emerged as the largest buyer of Russian seaborne crude oil from 2022 onwards. Western countries argue that oil revenue supports Russia's war efforts. This has led to the imposition of strict sanctions on Russia's energy sector. However, India maintains that Russian supplies are crucial to its energy security.
Several major economies secured relief from initial high tariffs by striking deals with Washington, but a deal between New Delhi and Washington remained elusive. Negotiations broke down in late July when India refused to open its market to US agricultural products and rejected Trump's offer to mediate a brief conflict between India and Pakistan. Subsequently, tariffs were doubled in August.
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Despite tensions, Trump and Modi have remained in contact and talks have resumed. Trump claimed in October that Modi had assured to stop purchasing Russian oil, but India publicly resisted US pressure.
The effects of tough US and European Union sanctions are beginning to be felt. India's Russian oil imports fell to about 1.2 million barrels per day in December—about 40 percent below the June peak, according to data from analytics firm Kpler.
