India-US Trade Deal Faces New Crisis as Trump Threatens Tariffs Over Russian Oil Purchase

US President Donald Trump has once again warned of increasing tariffs over India's purchase of Russian oil. This could lead to new tensions in India-US trade relations.

Trump On India-Russia Trade: US President Donald Trump's stance on trade with India is often inconsistent. At times, he appears positive about trade agreements with India, while at other times, he threatens India with trade sanctions and tariffs. Now, once again, Trump has targeted India's Russian oil purchases, warning of increased tariffs. This statement raises new questions about the India-US trade deal.

Trump's New Statement

US President Donald Trump once again put pressure on India on Monday, stating that if India continues to purchase oil from Russia, the US could further increase tariffs on India. According to Trump, if India continues to trade with Russia, the current 50% tariff will be further increased. This warning could once again complicate trade relations between India and the United States.

Tariff Increased in 2025

It is worth noting that in April 2025, when Donald Trump imposed reciprocal tariffs on countries worldwide, India was subjected to a 25% tariff. However, in August 2025, Trump accused India of economically aiding Russian President Vladimir Putin through its Russian oil purchases, after which the tariff on India was increased to 50%.

Trump's Statement on PM Modi

Trump has also praised Indian Prime Minister Narendra Modi. He said, "Prime Minister Modi is a very good person. He used to try to please me, but if India trades with Russia, we might increase tariffs on them soon." Trump's statement creates a new state of ambiguity regarding trade relations with India.

India's Increasing Russian Oil Purchases

India has increased its oil imports from Russia since the Russia-Ukraine war, and Russia has now become a major oil supplier to India. This has become a primary cause of tension between India and the United States. The US has repeatedly warned India that purchasing oil from Russia could further complicate its situation.

Impact on India-US Trade Deal

This new tariff threat could impact the ongoing trade deal between India and the United States. In recent months, there had been positive indications regarding a trade agreement between India and the US, with representatives from both countries being close to finalising it. However, Trump's new warning makes this matter appear complicated once again.