Narendra Modi and Donald Trump at the White House in Washington DC
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By Ira Deshpande

US President Donald Trump has given a stark warning to India: unless New Delhi halts its purchases of Russian oil, it will continue to face heavy tariffs. While speaking to the media Trump claimed he had spoken with India’s prime minister and had made it clear that they had reached an agreement to stop buying from Russia. When India’s government denied that such a conversation took place, Trump doubled down, saying that if the oil deal continues, India will keep paying major penalties. 

Trump’s remarks come in the context of mounting US pressure on Russia’s export markets. He argues that by buying Russian oil, India is indirectly financing Moscow’s war efforts in Ukraine. He noted that India has already been hit with heavy US tariffs on various exports and said those duties will not go away unless the oil-trade issue is resolved. 

The Indian side responded by stating it was not aware of any call between its prime minister and Trump over this matter. Indian officials also pointed out that New Delhi’s key priority remains safeguarding its domestic interests and energy security, rather than yielding to any external pressure. 

Analysts agree that India has indeed ramped up its purchases of Russian crude in recent months. Taking advantage of discounted supply, as Western nations have now shunned Moscow’s oil. This trend, they warn, may further complicate India’s trade relations with the USA if the President follows through on its threat. 

In short, the standoff underscores the balancing act India faces: navigating its strategic energy needs on one hand, while managing its commercial and diplomatic ties with a powerful ally of Russia and the USA. The oil-purchase decision may now carry far greater economic and geopolitical cost than it was initially expected.