Trump Says US Could Increase Tariffs on India Due to Russian Oil Imports

U.S. President Donald Trump said on Jan. 4 that his administration could increase tariffs on imports from India if the country keeps buying Russian oil, as the United States seeks to push Russia to end the war in Ukraine.

Speaking to reporters aboard Air Force One, Trump said that Indian Prime Minister Narendra Modi knew that the continued purchase of Russian oil could affect U.S.–India trade relations.

“Modi is a very good man. He’s a good guy. He knew I was not happy, and it was important to make me happy. They do trade, and we can raise tariffs on them very quickly,” the president told reporters.

Sen. Lindsey Graham (R-S.C.), who was traveling with the president, said India is “now buying substantially less Russian oil” as a result of Trump’s tariff hikes.

Graham said he hopes that the United States will enact a bill that would levy tariffs of up to 500 percent on countries continuing to buy Russian oil amid the ongoing war in Ukraine.

“If you’re buying cheap Russian oil, [you’re] keeping [Russian President Vladimir] Putin’s war machine going. We’re trying to give the ability to make that a hard choice by tariffs,” he said.

India currently faces a total U.S. tariff rate of 50 percent, including a 25 percent tariff that Trump imposed in August because of the country’s purchases of Russian crude.

India has sought to reach a trade agreement that will help ease Trump’s tariffs on its imports. In early December, the two leaders spoke by phone, and Modi reiterated support for Washington’s efforts to end the war in Ukraine, according to U.S. Ambassador to India Sergio Gor.

Modi confirmed the call in a Dec. 11 post on X, saying that he had “a very warm and engaging conversation” with Trump, although he did not specify whether the talk covered trade issues.

“We reviewed the progress in our bilateral relations and discussed regional and international developments. India and the U.S. will continue to work together for global peace, stability and prosperity,” Modi said.

Trump has previously warned that his administration wouldn’t reduce India’s tariffs unless the country stopped buying Russian oil.

India has become a major market for Russian oil as Moscow faces sanctions and export controls from Western nations aimed at pressuring it to end its war in Ukraine.

India’s annual crude oil imports from Russia were about $2.3 billion in 2021, but surged to $25.5 billion in 2022 after Russia launched its war against Ukraine.

India’s imports of Russian oil further rose to $48.6 billion in 2023 and $52.7 billion in 2024, according to the U.N. Comtrade database.