US President Donald Trump has warned India that continuing to import oil from Russia could prompt the United States to raise tariffs on Indian goods. Speaking to reporters on Air Force One, Trump said the US could act “very quickly” if New Delhi does not address Washington’s concerns, signaling potential economic implications for bilateral trade.
Trump also praised Prime Minister Narendra Modi, calling him “a very good man” who had “tried to make me happy” regarding India’s Russian oil purchases. Despite the compliment, he stressed that the tariff threat remains a real possibility if India does not align more closely with US policy.
For businesses, the warning could affect Indian exporters, particularly in sectors sensitive to US tariffs. Any increase could raise costs and disrupt trade flows, potentially impacting markets that rely heavily on Indian products. Analysts note that industries such as textiles, pharmaceuticals, and IT services could face heightened risks if tariffs are applied.
The US‑India trade tension comes amid India’s reliance on Russian crude, purchased at discounted rates due to Western sanctions on Russia. While this helps Indian refiners manage energy costs, it has drawn criticism from the US, which sees these imports as undermining its geopolitical strategy. India maintains that its energy decisions are market-driven and focused on domestic energy security.
To address concerns, India has instructed refiners to submit weekly data on oil imports, aiming to maintain transparency and support ongoing trade negotiations. Experts say that how India balances energy needs with trade relations will be closely watched by investors and global markets.
Trump’s warning underscores the complex interplay between geopolitics and business. Companies in India and abroad are monitoring developments closely, as any tariff escalation could have ripple effects on trade, supply chains, and economic growth.