Donald Trump has once again warned India of potential tariff increases if the country does not address U.S. concerns regarding its imports of Russian oil. Speaking to reporters aboard Air Force One on January 5, 2026, Trump stated that the U.S. could "quickly" raise tariffs on Indian goods if New Delhi doesn't cooperate on the "Russian oil issue".
India has become a major purchaser of discounted Russian seaborne crude oil since the start of the war in Ukraine in 2022. This has drawn criticism from Western nations, who argue that this trade is helping to fund Moscow's war efforts. Trump's recent remarks underscore a more assertive and transactional approach to U.S.-India trade relations. While he described Prime Minister Narendra Modi as "a very good man" and "a good guy", he also made it clear that Washington could swiftly impose tariffs if displeased.
Trump claimed that pressure from previous tariff threats had already led India to reduce its Russian oil imports. He argued that such pressure is necessary to weaken President Vladimir Putin's war machine and force countries to make a "hard choice" regarding their energy purchases. U.S. Senator Lindsey Graham echoed this sentiment, stating that tariffs on buyers of discounted Russian crude would create difficult choices. Graham also indicated that Indian officials had been in communication with Washington, conveying their efforts to decrease Russian oil purchases and seeking relief from existing tariffs.
According to reports, India's petroleum ministry has begun seeking weekly import data on Russian and U.S. oil from the country's refiners. While refiners have not been explicitly instructed to cut Russian oil purchases, some expect imports to fall below 1 million barrels per day in the coming months. Stricter sanctions from the U.S. and European Union have already contributed to a decrease in Russian oil flows to India, with imports falling to a three-year low of approximately 1.2 million barrels per day in December.
Negotiations between New Delhi and Washington have struggled to produce a trade agreement, collapsing in late July after India resisted opening its market to U.S. farm products and denied Trump's role in mediating a conflict between India and Pakistan. Despite these challenges, discussions have resumed. The U.S. had already doubled import tariffs on some Indian goods last year.
