President Donald Trump has warned that the U.S. could “quickly” raise tariffs on Indian imports if New Delhi does not assist with the “Russian oil issue”. This follows a significant move in August 2025, where his administration doubled tariffs on Indian goods to 50%, with 25% specifically cited as a penalty for purchasing Russian crude.
“PM Modi Knew I Was Not Happy”
Speaking to reporters aboard Air Force One, Trump personalized the trade tension by referencing his relationship with Prime Minister Narendra Modi:
“Modi’s a very good man… He knew I was not happy. It was important to make me happy. They do trade, and we can raise tariffs on them very quickly.”
š¹ Geopolitical Pressure and Energy Security
The warning comes at a time of high tension following a U.S. strike on Venezuela, placing global oil reserves at the center of international politics. While the U.S. continues to press partners to stop funding Russiaās war efforts, India has consistently maintained that its oil purchases are essential for domestic energy security and protecting the interests of the Indian consumer.Ā
š¹ Economic Impact and Ongoing Negotiations
The impact of existing tariffs has been severe, with reports indicating that Indian exports to the U.S. slumped by 37.5% between May and September 2025. Despite these threats, both leaders recently emphasized maintaining momentum in bilateral trade negotiations, even as India remains firm on protecting its agriculture and dairy sectors from U.S. market access demands.