Trump Hints at Higher Tariffs on India
U.S. President Donald Trump warned that the United States could raise tariffs on Indian goods if India does not address American concerns over its continued purchases of Russian oil. Trump made the remarks while speaking to reporters aboard Air Force One, characterising Indian Prime Minister Narendra Modi as a “good man” but saying he was not happy with New Delhi’s energy decisions and trade policies.
Existing Tariffs and Trade Tension
The U.S. has already imposed steep tariffs on Indian imports as part of ongoing trade tensions between the two countries. Last year, the Trump administration applied a 25% reciprocal tariff on a broad range of Indian products and an additional 25% penalty tariff linked specifically to India’s Russian oil purchases, bringing total duties up to about 50% in some categories. This escalation marked one of the sharpest tariff measures between the two trading partners and strained diplomatic and economic ties.
Energy and Trade Negotiations
India is one of the world’s largest buyers of Russian crude oil, in part due to discounted pricing after global sanctions on Russia. New Delhi has been gradually reducing its Russian oil imports as U.S. trade pressure and geopolitical dynamics evolve, and has also sought to increase disclosures by Indian refiners on oil import data in talks with the United States. Despite these moves, Washington continues to press New Delhi to align more closely on energy and trade issues.
Bilateral Talks Continue
The latest tariff warning follows a series of bilateral discussions, including recent negotiations aimed at resolving the wider trade dispute. Both countries have expressed interest in maintaining strong economic relations, though differences over oil imports and tariff levels remain a key sticking point.
