US President Donald Trump threatened India with a tariff increase if the country does not reduce its purchases of oil from the Russian Federation. The American leader made this statement in response to journalists’ questions regarding further cooperation between the countries in the field of energy trade.
This is reported by Finway
Market Reaction and Political Pressure
Following Trump’s remarks, Indian financial markets reacted negatively: the IT sector stock index fell by approximately 2.5%, reaching its lowest level in over a month. Investors express concern that ongoing trade disputes may complicate the achievement of a new trade agreement between the US and India.
Republican Senator Lindsey Graham emphasized that US sanctions against Russian oil companies and the increase in tariffs have significantly reduced oil imports to India. He supports the possibility of imposing tariffs of up to 500% on countries that continue to purchase Russian oil.
“If you are buying cheap Russian oil, you are supporting Putin’s war machine. We are trying to make it difficult for the president to make this choice through tariffs. Trump’s actions have been the main reason India is now buying significantly less Russian oil,” Graham said.
India’s Exports and Economic Risks
International trade experts warn that New Delhi’s cautious position may weaken its negotiating power on the international stage. Despite the increase in US tariffs, India’s exports to the US rose significantly in November. However, from May to November 2025, the volume of shipments decreased by more than 20%.