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Trump Threatens to Hit India with Tariff Hike
(MENAFN) U.S. President Donald Trump has threatened India with steep tariff increases if New Delhi continues purchasing oil from Russia, escalating tensions as the two nations negotiate a trade deal.
“They do trade. And we can raise tariffs on them very quickly, and it would be very bad for them,” Trump said aboard Air Force One, signaling Washington’s readiness to act.
The warning followed remarks from Senator Lindsey Graham, who credited Trump’s earlier measures with sharply reducing India’s imports of Russian crude. “I really do believe that what he [Donald Trump] did with India is the chief reason India is now buying substantially less Russian oil,” Graham told reporters.
Graham is advancing legislation that would enable further sanctions on countries trading with Moscow. He recalled a recent meeting with India’s ambassador: “I was at the Indian ambassador’s house about a month ago, and all he wanted to talk about is how they’re buying less Russian oil. ‘Would you tell the president to relieve the tariff?’ This stuff works. So, I’m hoping we’ll bring the bill up,” Graham said Sunday aboard Air Force One.
India, the world’s third-largest oil consumer, became a major outlet for Russian crude after the Ukraine war erupted in 2022. Data from analytics firm Kpler shows Russia has supplied more than 36% of India’s crude imports since then.
While some Indian refiners have paused new orders and sought alternative suppliers under U.S. pressure, others — including state-run Indian Oil Corporation — continue sourcing from Russian producers not directly sanctioned.
Trump imposed a 25% tariff on India in August 2025 after trade talks collapsed, later adding another 25% penalty tied to Russian oil purchases. He argued the imports were prolonging the Ukraine conflict.
New Delhi has rejected the criticism, insisting its energy policy is guided by national interests. In December, Trump further threatened tariffs, accusing India of “dumping” rice into the American market.
“They do trade. And we can raise tariffs on them very quickly, and it would be very bad for them,” Trump said aboard Air Force One, signaling Washington’s readiness to act.
The warning followed remarks from Senator Lindsey Graham, who credited Trump’s earlier measures with sharply reducing India’s imports of Russian crude. “I really do believe that what he [Donald Trump] did with India is the chief reason India is now buying substantially less Russian oil,” Graham told reporters.
Graham is advancing legislation that would enable further sanctions on countries trading with Moscow. He recalled a recent meeting with India’s ambassador: “I was at the Indian ambassador’s house about a month ago, and all he wanted to talk about is how they’re buying less Russian oil. ‘Would you tell the president to relieve the tariff?’ This stuff works. So, I’m hoping we’ll bring the bill up,” Graham said Sunday aboard Air Force One.
India, the world’s third-largest oil consumer, became a major outlet for Russian crude after the Ukraine war erupted in 2022. Data from analytics firm Kpler shows Russia has supplied more than 36% of India’s crude imports since then.
While some Indian refiners have paused new orders and sought alternative suppliers under U.S. pressure, others — including state-run Indian Oil Corporation — continue sourcing from Russian producers not directly sanctioned.
Trump imposed a 25% tariff on India in August 2025 after trade talks collapsed, later adding another 25% penalty tied to Russian oil purchases. He argued the imports were prolonging the Ukraine conflict.
New Delhi has rejected the criticism, insisting its energy policy is guided by national interests. In December, Trump further threatened tariffs, accusing India of “dumping” rice into the American market.
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