return to news
  1. 'Modi knew I was not happy': Trump threatens new tariff on India for Russian oil purchase

Business News

'Modi knew I was not happy': Trump threatens new tariff on India for Russian oil purchase

Upstox

3 min read | Updated on January 05, 2026, 09:17 IST

Twitter Page
Linkedin Page
Whatsapp Page

SUMMARY

US President Donald Trump praised Prime Minister Narendra Modi but warned tariffs on India could be raised quickly if needed.

Donald Trump

The US' 50% tariffs on Indian goods came into effect on Wednesday, August 27, 2025. | Image: Shutterstock

US President Donald Trump on Sunday claimed India has reduced purchases of Russian oil after Washington raised tariff pressure, asserting that New Delhi acted to “make me happy” following his displeasure over India’s energy ties with Moscow.

Open FREE Demat Account within minutes!
Join now

Speaking to reporters aboard Air Force One, Trump praised Prime Minister Narendra Modi, calling him “a very good man” and “a good guy”, while warning that the United States could quickly raise tariffs on India if required.

“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 and it would be very bad for them,” Trump said.

The remarks came as US Senator Lindsey Graham pressed for congressional approval of a bill to impose steep secondary tariffs on countries that continue purchasing Russian oil and gas if Moscow does not agree to a ceasefire in Ukraine within the next 50 days.

Graham said trade pressure had already proven effective, citing US tariff threats as a key factor behind tighter border enforcement and progress on European trade negotiations.

“If you want to end this conflict, put pressure on Putin’s customers,” he said, arguing that tariffs on buyers of discounted Russian crude would force difficult choices.

Referring to India, Graham said the 25% tariff linked to Russian oil purchases had prompted New Delhi to scale back imports.

“I was at the Indian ambassador's house about a month ago, and all they wanted to talk about is how they're buying less Russian oil. 'Would you tell the president to relieve the tariff?' This stuff works,” he said.

He said the proposed legislation would give the US president wide discretion to set tariff levels.

“I'm hoping we'll bring the bill up. From zero to five hundred (per cent). He (Trump) picks the number. Nobody else does. But if you're buying cheap Russian oil, keeping Putin’s war machine going, we're trying to get the President the ability to make that a hard choice,” Graham said.

Graham and Senator Richard Blumenthal have introduced the Sanctioning Russia Act of 2025, which seeks to impose secondary tariffs and sanctions on countries continuing to fund Russia’s war effort. The bill currently has 85 co-sponsors in the US Senate.

In a joint statement, the senators said Trump’s strategy of selling US-made weapons to NATO for use by Ukraine, combined with tariff pressure on countries buying Russian energy, had “changed the game” in efforts to end the war.

They said the proposed legislation would authorise tariffs of up to 500% on countries that continue buying Russian oil and gas while not supporting Ukraine, describing it as a “sledgehammer” that would give the president maximum flexibility.

The US has previously imposed a 50% tariff on India, of which a 25% is for buying Russian crude.

Volatile markets?
Ride the trend with smart tools.
promotion image

About The Author

Upstox
Upstox News Desk is a team of journalists who passionately cover stock markets, economy, commodities, latest business trends, and personal finance.

Next Story