New Delhi, JAN 5: US President Donald Trump has linked India’s continued import of Russian oil to the possibility of new US tariffs, saying Prime Minister Narendra Modi was fully aware of his concerns.
Addressing reporters on Air Force One on Sunday, Trump said trade penalties could follow if India does not reconsider its energy purchases. “PM Modi knew I was not happy,” Trump said. “It was important to make me happy. They do trade with us, and we can raise tariffs on them very quickly.”
The comments reflect growing unease in Washington over India’s expanding energy trade with Russia, even as Indian officials have maintained that affordable crude imports are essential to meet domestic demand.
Trump’s remarks come weeks after he and Modi spoke by phone to reaffirm cooperation on trade and economic ties. That conversation took place alongside renewed negotiations between Indian and US officials seeking to break a prolonged trade deadlock.
Trade tensions had already escalated shortly before the call, when Trump warned of possible tariffs on Indian rice. The threat followed complaints by a US farmer representative who accused India, China and Thailand of dumping rice in the American market.
The broader geopolitical backdrop has also shifted after US action against Venezuela pushed oil supply issues back into the spotlight. Venezuela possesses the largest proven oil reserves globally—over 300 billion barrels—but output has declined significantly under sanctions and reduced investment.
