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Informist, Monday, Jan. 5, 2026

 

NEW DELHI – US President Donald Trump has said that his country could raise tariffs on India if New Delhi does not help address Washington's concerns about Russian oil. The US currently levies 50% tariff on India, including 25% as penalty for buying crude oil from Russia. 

 

"They wanted to make me happy, basically... PM Modi's a very good man. He's a good guy. 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..," Trump told reporters Sunday.

 

On board Air Force One with Trump, US Senator Lindsey Graham said India had lowered its crude oil purchases from Russia and was looking for the US to lower tariffs. "I was at the Indian ambassador's house about a month ago and all he wanted to talk about is how they're buying less Russian oil," Graham said. "Would you tell the president to relieve the tariff," India's Ambassador to the US Vinay Kwatra said, as per Graham. 

 

India's crude oil imports from Russia are expected to fall sharply to 1.2 million barrels per day in December, the lowest in three years and down from 1.84 million barrels per day in November, according to data from global trade analytics firm Kpler. Imports of Russian crude in December accounted for about 25% of India's total crude imports of 4.96 million bpl during the month, down from 38% in November. 

 

India and US have been working on a trade agreement since February and have missed the fall 2025 target period for concluding the first tranche of the deal. Commerce Secretary Rajesh Agrawal on Dec. 15 said that India was "very close" to securing a "framework" deal with the US to lower the 50% tariff. However, Agrawal said he could not give a specific timeline for the deal to be signed.

 

Informist reported on Dec. 16, citing a commerce ministry official, that the chief negotiators from India and the US had concluded their discussions on the proposed Bilateral Trade Agreement. The remaining issues now required intervention at the ministerial level, including the commerce minister and the prime minister, the official added.

 

India's merchandise exports to the US were up 11% at $59.04 billion in the first eight months of 2025-26 (Apr-Mar). During the same period, India's imports from the US were at $35.40 billion, taking India's trade surplus with the US to $23.64 billion from $21.82 billion a year ago. In November alone, India's exports to the US were worth $6.98 billion, up from $6.31 billion in October and $5.70 billion in November last year.  End

 

US$1 = INR 90.20

 

Reported by Shubham Rana

Edited by Avishek Dutta

 

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