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Trump Threatens to Raise Tariffs on India Over Oil Trade with Russia: Tensions Escalate Amid Ongoing Diplomatic Talks

Ananya Pattnaik by Ananya Pattnaik
January 5, 2026
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US President Donald Trump has raised concerns over India’s continued oil trade with Russia, hinting that the United States could increase tariffs on Indian imports if New Delhi does not take action on the issue.


During a recent briefing, Trump mentioned Prime Minister Narendra Modi, acknowledging their friendly relationship but underscoring the importance of resolving the issue of India’s oil purchases from Russia. Trump suggested that the US could “quickly” raise tariffs on Indian imports if the Indian government did not address the ongoing oil trade with Russia, which the US has long opposed.

“India wanted to make me happy. Modi is a very good guy and he knew I was not happy. And it was important to make me happy. We can raise tariffs on them very quickly,” Trump remarked during the press briefing.

Trump’s statement refers to India’s continued trade with Russia in the aftermath of the ongoing conflict in Ukraine, where the US has imposed sanctions against Moscow. The Trump administration has been vocal in its opposition to countries, including India, purchasing Russian oil, arguing that such transactions allow the Kremlin to fund its war efforts. The US previously imposed a 50% tariff on Indian imports in August 2025, partly in response to the Russian oil trade.

While the US president’s recent comments come amid growing trade tensions between India and the US, the situation is further complicated by India’s dependence on Russian oil. India, which sources a significant portion of its oil from Russia, has repeatedly stated that its energy policies are determined by market offers and the needs of its population. India has denied claims by Trump that Prime Minister Modi had assured him India would cease buying oil from Russia.

Despite these ongoing disagreements, there have been moments of diplomatic rapprochement between India and the US. Following the imposition of tariffs, Trump expressed his continued friendship with Modi, calling the US-India relationship “special.” Modi echoed these sentiments, appreciating Trump’s positive outlook on bilateral ties.

Trump’s remarks come shortly after a significant escalation in US foreign policy towards Venezuela, where the US has ramped up actions following the capture of Venezuelan President Nicolás Maduro. The geopolitical shifts involving Venezuela, Russia, and oil have placed significant pressure on the US-India relationship, as Trump aims to force a shift in India’s stance on Russian oil.

While India remains resolute in its position, Trump’s threats to increase tariffs highlight the growing friction between the two nations, which have historically enjoyed strong ties. As both countries continue to navigate these complexities, it remains to be seen how the trade negotiations will evolve and what impact this issue will have on broader diplomatic relations.

Tags: diplomatic ties between US and IndiaIndia oil importsIndia US diplomatic relationsNarendra ModiRussian Oil TradeTrump remarks on Russia oilTrump tariffs on IndiaUS foreign policy 2026US India trade relationsUS tariff threats
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