The United States could raise tariffs on India if New Delhi does not meet Washington’s demand to freeze Russian oil imports, President Donald Trump said, growing as trade talks remain impasse.
“(Prime Minister Narendra) Modi is a good guy. He knew I wasn’t happy, and it was important to make me happy,” Trump told reporters on Air Force One.
“They are trading, and we can raise prices for them very quickly,” Trump said in response to a question about Russian oil imports from India.
India’s commerce ministry did not immediately respond to a request for comment.
Trump’s comments follow months of trade talks after the US doubled tariffs on Indian imports to 50 percent last year as punishment for buying too much Russian oil.
Indian markets reacted on Monday, with an index of technology shares falling nearly 2.5 percent to the lowest in more than a month, as investors worried that poor trade relations could delay the US-India trade deal.
Republican Senator Lindsey Graham, a close Trump ally, said US sanctions on Russian oil companies and higher tariffs on India had helped curb Indian oil imports.
Graham supports legislation to impose tariffs of up to 500 percent on countries like India that continue to buy Russian oil.
“If you buy cheap Russian oil, (you) keep Putin’s war machine going,” he said, adding that “we’re trying to empower the President to make that a tough decision on taxes.”
Trump’s actions are the reason why India is now buying “very cheap Russian oil,” Graham said.
Trade experts warn, however, that New Delhi’s cautious approach risks weakening its position.
Ajay Srivastava, founder of trade think tank Global Trade Research Initiative, said Indian exports already face US tariffs of 50 percent, with 25 percent linked to Russian crude imports.
While Indian refiners have cut imports after the sanctions, he said, purchases have not completely stopped, leaving India “in a gray area.”
“Ambiguity no longer works,” Srivastava said, urging India to clearly state its position on Russian oil. He warned that even a complete freeze may not end US pressure, which could shift to other trade demands, and that higher tariffs risk deep export losses.
Separately, India took a cautious stance after the United States arrested Venezuelan President Nicolas Maduro on Saturday, urging dialogue without explicitly naming Washington.
Despite the high tariffs, India’s exports to the US jumped in November, even though exports fell by more than 20 percent between May and November 2025. As New Delhi seeks to secure a trade deal with Washington, the government has asked refiners to disclose weekly their purchases of Russian and US oil to counter US concerns.
Modi has spoken to Trump at least three times since the tariffs were imposed. India’s commerce secretary met with US trade officials last month, but talks have not been resolved.
(Reuters)
