Trump threatens India with new tariffs over Russian oil purchases

U.S. President Donald Trump has threatened India with new tariffs in response to the country’s government buying Russian oil.

“… it would be very bad for them,” Trump made the remarks addressing reporters on board Air Force One, per Caliber.Az.

“[Indian Prime Minister Narendra] Modi is a very good man. He is a good guy. He knew I was not happy. It was important to make me happy. They (India and Russia) do trade, and we can raise tariffs on them, and it would be very bad for them,” Trump said.

The comments come as Indian and American economists and diplomats are reportedly negotiating a major new trade agreement between the two countries.

Since Russia's 2022 invasion of Ukraine, India has become the largest buyer of seaborne Russian crude, leveraging heavy discounts to reduce energy costs. Russia supplied nearly 35% of India's oil imports in 2025, though volumes fluctuated. In response to U.S. pressure, India began requiring weekly refiner reports on Russian and U.S. purchases in January 2026, signalling efforts to diversify while prioritising energy security.

In August 2025, the Trump administration imposed an additional 25% "penalty" tariff on Indian goods (on top of existing 25% reciprocal duties), raising rates to 50% in many categories—explicitly linked to Russian oil purchases funding Moscow's war effort. Despite this, Indian exports to the U.S. showed resilience.

By Khagan Isayev