US-India Tariffs Linked to Russian Oil Purchases, Trump Says

US President Donald Trump said Prime Minister Narendra Modi "knew he was not happy" about India buying Russian oil, adding that Washington could raise duties on Indian goods "very quickly". The comments linked India's crude sourcing choices with possible higher tariffs affecting bilateral trade.

Trump spoke with reporters aboard Air Force One while travelling from Florida to Washington DC. During the interaction, Trump repeatedly tied India's energy decisions to US trade leverage, suggesting New Delhi adjusted Russian oil purchases in response to existing and potential tariff pressure.

US-India Tariffs Linked to Russian Oil

Explaining his view of the Indian response, Trump said: "They (India) wanted to make me happy, basically. Modi is a very good man; he is a good guy.He knew I was not happy, and it was important to make me happy. They do trad,e and we can raise tariffs on them very quickly. It would be very bad for them," Trump said. His remarks indicated that trade tools could be used quickly if policy concerns continued.

US Senator Lindsey Graham, who was travelling with Trump on Air Force One, linked earlier tariff moves directly to India's energy imports. Graham called the existing tariffs on India the "chief reason" that New Delhi had been purchasing much less Russian oil, framing the issue as economic pressure linked to foreign policy goals.

Graham referred to his tariff proposal that would set 500 per cent duties on imports from countries that continue buying Russian oil. Graham argued that limiting Russia's revenue from such buyers was necessary to pressure Russian President Vladimir Putin and influence the Russia-Ukraine conflict through financial channels rather than direct confrontation.

Trump responded that sanctions and related measures were hurting Russia severely, and then cited India as an example within that framework. Graham added that the US had already placed a 25 per cent tariff on India because of its Russian oil purchases. Graham said, "I was at the Indian Ambassador's house about a month ago and all he wanted to talk about is how they are buying less Russian oil. 'Would you tell the President to relieve the tariff? Graham said." His account suggested New Delhi had raised the tariff issue in diplomatic discussions.

MeasureCountry targetedRate mentioned
Existing tariff linked to Russian oilIndia25 per cent
Proposed tariff on importers of Russian oilCountries buying Russian oil500 per cent

For India-focused market watchers, the exchange underlined how US sanctions policy, tariffs on India and energy trade are closely connected. Any future change in Russian oil imports or US tariff levels could influence India's trade balance, diplomatic engagement with Washington and broader external sector risks.

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