US Could Raise Tariffs As Trump Threatens India Over Russian Oil Trade

US President Donald Trump has escalated pressure on India by threatening to impose significantly higher tariffs on Indian goods if New Delhi does not curb its continued imports of Russian oil, a move that could deepen trade tensions and complicate negotiations between the two economic powers.

Trump's comments came during a public address and reinforced Washington's stance that India's growing purchases of discounted Russian crude undermine Western efforts to isolate Moscow amid the war in Ukraine.

Trump suggested that India's refusal to align with US policy on Russian energy could result in punitive tariff hikes beyond the already high duties currently in place. The United States had previously doubled tariffs on Indian imports to 50%, positioning them among the highest levies on any major trading partner. Trump has threatened additional increases, saying India has“not been a good trading partner” because it buys Russian oil while maintaining substantial trade with the US.

According to Reuters and other reports, Trump indicated Washington could raise tariffs further if New Delhi did not address what he described as concerns over its oil purchases from Russia. These purchases, India argues, are driven by national energy security needs, given that Russian crude has been available at steep discounts since the outbreak of the Ukraine conflict in 2022.

India has become one of the world's largest buyers of Russian crude in recent years, benefiting from lower prices after Western nations imposed price caps and sanctions on Russian energy exports. While US and EU sanctions have reduced Russian oil flows somewhat, India still imported significant volumes in late 2025, though there has been some fluctuation as sanctions and market conditions evolve.

New Delhi has strongly rejected Trump's tariff threats, calling them“unjustified and unreasonable.” Indian officials have emphasized that their decision to purchase Russian oil is based on economic and energy considerations, not geopolitical alignment. They also underscored that traditional oil suppliers reallocated shipments to Europe after the Ukraine war began, prompting India to seek alternative sources for affordable crude.

The tariff dispute arrives amid ongoing negotiations for a broader US-India trade deal, which have thus far faced challenges. Discussions stumbled previously when India resisted opening certain markets to US agricultural products and other concessions favoured by Washington. The unresolved Russian oil issue continues to act as a major stumbling block, with both sides under pressure to balance economic needs and geopolitical priorities.

Trump's tariff rhetoric reflects a broader trend in his trade policy, which frequently leverages tariffs as a tool to pressure trading partners on geopolitical issues. Washington's insistence on aligning India with its stance on Russia underscores the intersection of economic and strategic objectives, even as New Delhi seeks to maintain strategic autonomy and energy security.

As tensions simmer, India's commitment to its energy strategy and Trump's resolve to penalize oil-linked trade suggest that both nations may have to navigate a stretched and complex negotiation process to resolve their differences.

MENAFN04012026007385015968ID1110554367