Trump hints at higher tariffs on India over Russian oil imports

US President Donald Trump on Sunday (January 4) reportedly hinted at raising the existing tariffs on Indian imports if it continued to import Russian oil.

Trump made the remark while briefing journalists on board Air Force One about America’s next actions after capturing Venezuelan president Nicolas Maduro.

The American president was heard saying in an audio shared by the White House, “They wanted to make me happy, basically. PM Modi’s a very good man. He’s a good guy. He knew I was not happy. It was important to make me happy. They do trade, and we can raise tariffs on them very quickly.”

“We could raise tariffs on India if they don’t help on the Russian oil issue,” said Trump.

Ongoing trade negotiations

Trump’s latest warning about further tariff hikes comes amid ongoing trade negotiations between the two nations.

A couple of months earlier, the US president had claimed that PM Narendra Modi “had assured him that India would stop buying Russian oil”, weeks after the US tariffs of 50 per cent on Indian imports took effect.

Also Read: 2025, when Modi's India found Trump 1.0 and Trump 2.0 to be cheese and chalk

“There will be no oil. He’s not buying oil,” Trump had said in October.

At the time, India had denied that any such conversation had taken place.

India has always maintained the position that its policies are influenced by the needs of the Indian consumer and market dynamics.

Farm and dairy sectors

The US has also been intensifying its efforts to convince India to reduce import duties on agricultural products from America.

Trump had threatened to impose fresh tariffs on Indian rice exports to the US after a representative of American farmers had complained of dumping by India, Thailand, and China.

Also Read: Trump warns Venezuela’s vice president Rodríguez of ‘big price’ if she defies US

“Why is India allowed to do that? They have to pay tariffs. Do they have an exemption on rice?” the US president reportedly questioned Treasury Secretary Scott Bessent.

India has historically been consistent in its policy of protecting its farming and dairy sectors.

Russian oil

US officials have alleged that Russia uses the revenue generated by its oil sales to fuel the war against Ukraine. They also allege that India has been “profiteering” by reselling the oil.

The imposition of 50 per cent tariffs on India was perceived as Trump’s tactic to apply pressure on Russian President Vladimir Putin to end the war in Ukraine.

Also Read: What we know about Venezuela’s oil, which Trump wants to ‘fix’ and sell

It is to be seen how Trump’s latest remark could affect the ongoing trade talks between India and the US.