Trump Warns Modi of Higher Tariffs Over Russian Oil Purchases

US President Donald Trump again warned that Washington could raise tariffs on India if it does not reduce imports of Russian oil, increasing pressure as trade talks remain stalled.

Speaking to reporters aboard Air Force One, Trump said Indian Prime Minister Narendra Modi was aware of his concerns. He added that the United States could raise tariffs on Indian goods quickly if needed.

The warning follows months of negotiations after the US last year raised import duties on Indian products to 50%, citing India’s continued purchases of Russian oil.

Indian markets reacted on Monday, with technology stocks falling about 2.5% amid fears that tensions could delay a trade agreement between the two countries.

Republican Senator Lindsey Graham, a close Trump ally, said US sanctions and higher tariffs had already reduced India’s Russian oil imports. He supports legislation that would allow tariffs of up to 500% on countries still buying Russian oil.

Graham said purchasing discounted Russian crude helps fund Moscow’s war effort, and tariffs are meant to force tougher choices.

Trade analysts caution that India’s cautious approach could weaken its position. Ajay Srivastava of the Global Trade Research Initiative said Indian exports already face steep US tariffs, partly linked to Russian oil imports.

Although Indian refiners have reduced purchases, imports have not fully stopped, leaving New Delhi exposed to continued pressure. Srivastava warned that even halting Russian oil imports may not end US demands and could lead to further trade conditions.

Separately, India called for dialogue after the United States captured Venezuela’s President Nicolas Maduro, without directly naming Washington.

Despite high tariffs, Indian exports to the US rose in November, though overall shipments fell sharply between May and November 2025. As talks continue, India has asked refiners to report weekly oil purchases from Russia and the US to address American concerns.

Prime Minister Modi has spoken with Trump several times since the tariffs were imposed, and senior trade officials from both sides have met, but negotiations remain unresolved.