In a stark warning that underscores persistent friction in bilateral ties, former and potentially future US President Donald Trump has directly threatened India with increased tariffs over its continued purchase of Russian crude oil. The remarks, made on January 5, 2026, cast a shadow over ongoing trade discussions between the two nations.
Trump's "Very Quick" Tariff Threat and Modi's Assurance
Trump explicitly stated that the United States could rapidly escalate tariffs on Indian goods if New Delhi does not provide assistance on the issue of Russian oil. "We could raise tariffs on India if they don't have help on Russian oil issue," he declared, emphasizing the speed at which such action could be taken. He further commented on his relationship with Prime Minister Narendra Modi, noting, "Prime Minister Modi knew I was not happy" about India's energy trade with Russia, and underscored that it was "important to make me happy."
Background of Existing Tariffs and Conflicting Claims
This latest warning is not an isolated move. It builds upon a 50% tariff that the Trump administration imposed on certain Indian imports in August 2025, a measure he justified at the time by pointing to India's sustained energy trade with Russia amidst the ongoing Russia-Ukraine conflict. Adding a layer of complexity to the dispute, Trump has previously asserted that PM Modi had promised to halt purchases of Russian oil. However, the Indian government has firmly denied offering any such assurance, dismissing the claim outright.
Geopolitical Ramifications and Trade Relations
The public admonition from the US leader highlights the enduring and delicate challenge India faces in balancing its strategic autonomy with its growing partnership with the West. The statements bring to the forefront the persistent US concerns regarding India's deep-rooted ties with Moscow and how these relationships influence global geopolitics and trade dynamics. As high-stakes trade talks continue, this episode signals that energy policy and alignment on international conflicts remain potential flashpoints in the otherwise strengthening US-India relationship.
The development confirms that, regardless of personal rapport between leaders, hard national interests—particularly in the realms of energy security and trade—are paramount. The threat of escalating tariffs presents a significant economic challenge for India, potentially affecting a wide range of export sectors at a time of global uncertainty.
