Washington D.C. - In a move that could reignite trade tensions between the United States and India, President Donald Trump has issued a fresh warning to New Delhi regarding its continued imports of Russian oil. Speaking to reporters aboard Air Force One on Sunday, January 4, 2026, Trump stated that the U.S. could raise tariffs on Indian goods if India does not curtail its purchases of Russian oil.

Trump's remarks come amidst ongoing trade negotiations between the two nations and months after the U.S. doubled import tariffs on Indian goods to 50% in August 2025, a decision driven, in part, by India's continued oil trade with Russia.

"Modi is a good guy," Trump said, referring to Indian Prime Minister Narendra Modi. "He knew I was not happy, and it was important to make me happy. They do trade, and we can raise tariffs on them very quickly," he added, directly linking his dissatisfaction to India's energy and trade policies.

The President's statement reflects the U.S.'s continued pressure on India to reduce its reliance on Russian energy resources, a stance that aligns with Washington's broader efforts to isolate Moscow following the war in Ukraine. Many officials in the Trump administration have asserted that Russia is using the revenue from oil sales to fund its military operations, and that India is profiting from reselling this oil.

While India has not yet issued an official response to Trump's latest warning, Indian officials have previously maintained that the country's priority is to safeguard the interests of its consumers in a volatile energy market. India has also insisted that its import policies are guided solely by this objective. Despite the existing tariffs, India's exports to the U.S. saw a significant increase in November, potentially emboldening India's firm stance against U.S. trade demands.

Republican Senator Lindsey Graham, a close ally of Trump, echoed the President's sentiments, stating that sanctions on Russian oil companies and tariffs on India have already contributed to a decrease in Indian oil imports. Graham is reportedly backing legislation that could impose tariffs of up to 500% on countries that continue to purchase Russian oil, reinforcing the U.S.'s hardline stance.

However, trade experts caution that India's current approach could weaken its position. Ajay Srivastava, founder of the Global Trade Research Initiative, noted that Indian exports already face a 50% U.S. tariff, with a portion specifically tied to Russian crude purchases. He urged India to clearly articulate its position on Russian oil, stating that "Ambiguity no longer works".

It is worth noting that in October of last year, Trump claimed that Prime Minister Modi had assured him that India would cease buying oil from Russia, a claim that was subsequently denied by India.

As of last week, India has been requesting weekly disclosures from refiners regarding their Russian and U.S. oil purchases. Some anticipate that Russian crude imports may soon dip below 1 million barrels per day as India seeks to finalize a trade agreement with the U.S. India's Commerce Secretary Rajesh Agrawal met with U.S. Deputy Trade Representative Rick Switzer last month in Delhi to discuss bilateral trade and economic ties.

The coming weeks will be crucial in determining whether India and the U.S. can reach a compromise on the issue of Russian oil imports and avert a potential trade war.