The US imposed a 50% tariff on India in August of 2025, half of which was a penalty for buying crude from Russia

US President Donald Trump has threatened India with a tariff hike if New Delhi continues to buy oil from Russia.

Trump's remarks come amid ongoing negotiations between New Delhi and Washington to clinch a trade deal.

"They do trade. And we can raise tariffs on them very quickly, and it would be very bad for them," Trump said on board Air Force One.

Trump was adding to comments made by Senator Lindsey Graham, who said India had substantially reduced its oil purchases from Russia after Washington hit it with tariffs.

"I really do believe that what he [Donald Trump] did with India is the chief reason India is now buying substantially less Russian oil," Graham told reporters.

The Senator is pursuing legislation that would make it possible to impose additional sanctions on nations that conduct trade with Russia.

"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. 'Would you tell the president to relieve the tariff?' This stuff works. So, I'm hoping we'll bring the bill up," Graham told reporters aboard Air Force One on Sunday.

India, the world's third-largest oil consumer, became a key market for Russian crude following the escalation of the Ukraine conflict in 2022.

Data from analytics firm Kpler shows Russia has been the South Asian nation's top oil supplier since then, providing over 36% of India's crude imports.

However, key Indian refiners have temporarily halted new orders and sought alternative supplies in response to US sanctions.

Others, including the state-backed Indian Oil Corporation, say they will continue buying oil from Russian producers that haven't been sanctioned.

Trump slapped India with a 25% tariff in August of 2025 after the two countries failed to reach a trade agreement and then announced an additional 25% levy on India as a penalty for purchasing Russian oil, claiming the trade was prolonging the Ukraine conflict.

New Delhi has dismissed the criticism, saying its energy policy is driven by national interests.

In December, Trump threatened to impose additional tariffs on India, accusing it of "dumping" rice into the American market.