PM Modi knew I wasn't happy: Trump hints at new tariffs over Russian oil

US President Donald Trump has signalled the possibility of imposing fresh tariffs on India, explicitly linking the threat to New Delhi’s continued importation of Russian oil. Speaking to reporters on Sunday, Trump suggested that Prime Minister Narendra Modi was aware of Washington's dissatisfaction.

Addressing the media on board Air Force One, Trump characterised his relationship with the Indian leader as positive but transactional. "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."

The comments mark a potential escalation in an already tense trade environment. Last year, the Trump administration launched an aggressive tariff offensive, levying a 25 per cent reciprocal tariff on India, alongside an additional 25 per cent penalty specifically for purchasing Russian crude. These combined duties pushed total levies in certain categories to a staggering 50 per cent, causing a significant strain on diplomatic ties between New Delhi and Washington.

The President's latest remarks come just weeks after a telephonic conversation with PM Modi, during which both leaders stressed the importance of maintaining momentum in bilateral trade despite the ongoing friction. That call coincided with the start of a new round of negotiations aimed at resolving the impasse.

However, the path to a resolution appears fraught. Days prior to his call with Modi, Trump had already floated the idea of fresh tariffs on Indian rice. During a White House roundtable, following complaints from a farmer representative regarding alleged dumping by India, China, and Thailand, Trump questioned Treasury Secretary Scott Bessent on existing exemptions.

"Why is India allowed to do that? They have to pay tariffs. Do they have an exemption on rice?" Trump asked. When informed that a trade deal was being negotiated, he dismissed the delay, stating: "But they [India] shouldn't be doing that... We will get it settled. Tariffs solve the problem in two minutes."

Current discussions to break the deadlock have reportedly stalled. Washington is aggressively pushing for the removal of steep import duties on American agricultural products to access the Indian market. Conversely, New Delhi remains steadfast in its refusal to compromise on protections for its domestic farming and dairy sectors, creating a significant hurdle in the negotiations.