Washington: U.S. President Donald Trump has vowed to keep heavy tariffs on Indian goods until New Delhi halts its imports of Russian crude oil, warning that trade penalties will remain in place unless India aligns with Washington’s sanctions policy against Moscow. The statement marks a new phase of economic pressure in the complex U.S.–India relationship, intertwining trade diplomacy with global energy politics.
Speaking aboard Air Force One, Trump revealed that he had recently spoken with Indian Prime Minister Narendra Modi, asserting that Modi assured him India would not continue with “the Russian oil thing.” Trump, however, made it clear that any backtracking by India would invite further punitive measures. “If they want to keep buying from Russia, they’ll continue paying massive tariffs and they don’t want to do that,” he told reporters.
The remarks come amid rising tensions between Washington and New Delhi over India’s growing energy ties with Russia. Since the imposition of Western sanctions following the 2022 invasion of Ukraine, India has become one of the largest importers of discounted Russian oil, taking advantage of cheaper prices to meet its energy demands. While India maintains that its oil purchases are driven purely by national interest and energy security, Washington sees them as a breach of collective efforts to limit Moscow’s wartime revenue.
The tariffs currently in place target a wide range of Indian exports to the United States. Analysts note that nearly half of the 50% duties imposed on certain Indian goods stem from U.S. retaliation over New Delhi’s continued Russian oil purchases. The move underscores Trump’s characteristic approach to diplomacy using economic leverage as a means of enforcing geopolitical compliance.
While Trump claimed to have held a conversation with Prime Minister Modi regarding the issue, India’s Ministry of External Affairs stated it was unaware of any such call. Indian officials reiterated that their country’s energy policy remains independent and guided by domestic needs rather than external pressure. A White House source, however, suggested that India had already reduced its Russian crude imports by nearly half—though data from energy tracking firm Kpler indicated that shipments were actually rising, reaching an estimated 1.9 million barrels per day.
This divergence highlights the opaque nature of the global oil trade, where shipments are often re-routed, re-branded, or processed through intermediaries to evade scrutiny. Energy experts argue that even if India were to formally reduce direct purchases, Russian oil could continue entering its refineries through complex global supply channels.
Trump’s tariff warning adds a fresh layer of uncertainty to the U.S.–India partnership, which has otherwise deepened in defence and technology cooperation under both governments. The new threat risks undermining ongoing trade negotiations, complicating Washington’s efforts to rally India as a strategic counterweight to China in the Indo-Pacific region.
For India, the dilemma is steep. Russian oil has been crucial in stabilizing domestic fuel prices and controlling inflation. Cutting those supplies could force India to turn to costlier Middle Eastern or American crude, potentially straining its economy. Moreover, the dispute comes at a sensitive time when India is seeking to attract U.S. investment in manufacturing and green energy.
Beyond bilateral trade, the confrontation reflects Washington’s broader strategy to isolate Russia economically. By targeting one of Moscow’s largest oil customers, the U.S. aims to choke off a critical revenue stream funding its war in Ukraine. However, pressuring India a key democratic ally risks alienating one of America’s most important strategic partners in Asia.
As both nations navigate the delicate balance between national interest and global alliances, the standoff over Russian oil could evolve into a defining test of the U.S.–India relationship. Whether economic coercion or quiet diplomacy prevails will determine not just the fate of bilateral trade but also the shape of future global energy politics.