Trump Signals New Tariffs on India Over Russian Oil, Says PM Modi Knew US Was Unhappy

US President Donald Trump has signalled the possibility of imposing fresh tariffs on India over its continued imports of Russian oil, suggesting that Prime Minister Narendra Modi was aware of Washington’s displeasure on the issue. The remarks have reignited concerns about escalating trade tensions between the two countries.

Speaking to reporters aboard Air Force One, Trump praised Prime Minister Modi personally but made it clear that India’s energy trade with Russia remains a point of contention for the United States. Trump said Modi was “a very good man” and acknowledged that the Indian leader knew he was unhappy. He added that tariffs could be raised swiftly if required, underlining Washington’s readiness to use trade measures as leverage.

Trump’s comments come against the backdrop of India’s continued purchase of discounted Russian crude oil since the onset of the Ukraine conflict. While New Delhi has maintained that its energy decisions are driven by national interest and price stability, Washington has repeatedly expressed discomfort over countries expanding trade with Moscow.

Last year, the US administration escalated pressure by imposing a 25 per cent reciprocal tariff on Indian goods, followed by an additional 25 per cent penalty linked specifically to India’s Russian oil imports. In some sectors, this pushed total duties to as high as 50 per cent, triggering a sharp strain in bilateral relations between New Delhi and Washington.

The latest warning comes only weeks after Trump and Modi held a telephone conversation in which both leaders stressed the importance of maintaining momentum in bilateral trade ties despite unresolved tariff disputes. That conversation coincided with a renewed round of negotiations between officials from both countries aimed at easing the ongoing trade impasse.

However, progress in talks has been slow. Washington has been pushing India to reduce or remove high import duties on American agricultural products, while New Delhi has remained firm in protecting its domestic farming and dairy sectors, which are politically and economically sensitive.

Just days before his call with Modi, Trump had also threatened tariffs on Indian rice imports. The issue was raised after a US farmer representative complained at a White House roundtable about alleged dumping by India, China, and Thailand. Trump questioned why India was allowed to export rice at competitive prices and suggested tariffs were the fastest solution to such trade disputes.

Despite acknowledging that a trade deal with India is under discussion, Trump reiterated his belief that tariffs are an effective tool to resolve disagreements quickly. He has consistently argued that higher duties can force trading partners back to the negotiating table.

India, meanwhile, has defended its trade and energy policies, emphasising the need to safeguard food security, farmer livelihoods, and affordable energy for its population. Officials in New Delhi have also pointed out that India’s overall trade relationship with the US remains strong, with both sides benefiting from cooperation in technology, defence, and services.

As geopolitical and economic pressures continue to intersect, Trump’s latest remarks highlight the fragile balance in India–US relations. Whether the threat of new tariffs materialises will depend largely on the outcome of ongoing negotiations and how both sides navigate competing strategic and economic priorities in the weeks ahead.