The United States has warned that it could raise taxes, called tariffs, on goods coming from India if India does not help address U.S. concerns about buying Russian oil. U.S. President Donald Trump made these comments while speaking to reporters on Air Force One.
Trump said that India wanted to keep him happy and described Prime Minister Narendra Modi as a good person. He added that the U.S. can increase tariffs on Indian products very quickly if needed. According to Trump, trade is a key issue, and pressure through tariffs is one way the U.S. tries to get results.
The U.S. has already taken strong action before. Last year, it doubled tariffs on Indian goods to 50 percent. This move was partly meant to punish India for buying large amounts of Russian oil. At the same time, Washington has been trying to reduce its trade deficit with India, meaning it wants to buy and sell goods in a more balanced way.
After Russia’s war with Ukraine began in 2022, India became the biggest buyer of discounted Russian oil shipped by sea. India says it buys this oil because it is cheaper and important for its energy needs. However, the U.S. and other Western countries believe that money from oil sales helps Russia fund the war. Because of this, they have placed sanctions on Russia’s energy sector.
Trade talks between India and the U.S. have been difficult. While many countries managed to reach trade deals with Washington and reduce high tariffs, India and the U.S. have not yet agreed. Talks broke down in late July after India refused to open its market to U.S. farm products and rejected Trump’s claim that he helped mediate a short conflict between India and Pakistan. Soon after, Trump raised tariffs again in August.
Even so, Trump and Modi have continued discussions, and trade talks have restarted. Russian oil remains a major problem in these talks. Trump said in October that Modi promised to stop buying Russian oil, but India has publicly disagreed, saying it cannot risk its energy security.
New U.S. and European Union sanctions have already reduced Russian oil supplies to India. In December, imports fell to about 1.2 million barrels per day, the lowest level in three years. This was around 40 percent lower than the peak seen in June.
