Published on 05/01/2026 05:27 PM
US President Donald Trump on Monday threatened to impose higher tariffs on India over its purchase of crude oil from Russia. "(Prime Minister Narendra) Modi is a good guy. He knew I was not happy, and it was important to make me happy," the US president reportedly said. "They do trade, and we can raise tariffs on them very quickly," he added. The development comes at a time when India and the US have been working to arrive at a mutually agreeable trade deal between both nations, and India has already clarified its position on the West's criticism of its oil imports. Delegations from both sides have engaged in several rounds of talks over the past few months.
Last year, the US imposed an additional 25 per cent tariff on Indian goods, taking the total duty to 50 per cent, in response to India's continued purchases of Russian oil. The Trump 2.0 administration has been working to resolve a peace deal in the ongoing Ukraine-Russia war.
Republican Senator Lindsey Graham reportedly said that buying cheap Russian oil keeps Putin's "war machine going". Graham is a close Trump ally.
Last year, the US president connected with Prime Minister Modi over telephone, emphasising the need to keep up the momentum in their joint efforts to boost bilateral commerce amid lingering tariff concerns. The call came close on the heels of Trump warning of fresh tariffs on Indian rice after a farmer representative at a White House roundtable complained of dumping by India, China and Thailand.
Talks between India and the US to resolve the tariff impasse have stalled, with Washington pushing hard to prevent steep import duties on American agricultural products.
India has repeatedly clarified its stance that it will continue to purchase crude oil from the international markets as it deems fit to protect its energy interests and its 140 crore consumers.
Since August 2025, Indian exporters have paid a 50 per cent levy on consignments to the world's largest econony, with a bilateral trade agreement yet to materialise between both nations.
Since the imposition of American tariffs on India, Trump and PM Modi have spoken at least three times on phone but talks on a potential India-US trade deal remain inconclusive until now.
In November itself, Russia and the US made up nearly half of India’s oil imports.
Here are answers to some of the most frequently asked questions (FAQs) on the subject:
What has US President Donald Trump said about India? Will his administration slap additional trade tariffs on India?
The 47th American president has warned that the US could quickly raise tariffs on Indian goods over New Delhi’s continued purchase of crude oil from Russia. He has said that PM Modi knew that he was unhappy about it, and yet India continues to purchase oil from Russia.
Why is the US unhappy with India buying Russian oil?
The US president has said that he is "unhappy" about India's repeated purchase of Russian oil as doing so at discounted rates indirectly supports Russia’s war effort in Ukraine.
What is the current tariff situation for Indian exports to the US?
Since August 2025, Indian exporters have been paying a cumulative 50 per cent tariff on shipments to the US.
Are India and the US negotiating a trade deal?
Yes. However, negotiations remain inconclusive as of date.
What is India’s stand on crude oil imports?
India has consistently maintained that it will buy oil from international markets based on its national interest, energy security needs and the welfare of its 140 crore consumers.
Have Trump and PM Modi discussed the issue directly?
Yes.