US President Donald Trump has once again sent a strong warning to India, indicating that New Delhi could face further penalties if it continues to import Russian oil despite escalating global sanctions. His comments came during a joint press conference with the Polish President at the White House, where he highlighted that the United States has yet to roll out “Phase-2” and “Phase-3” tariffs, which could target countries that maintain energy and trade ties with Moscow.

Trump’s warning on Russian oil imports

Trump identified India as the second-largest buyer of Russian oil after China, underlining that Washington views New Delhi’s continued imports as undermining its broader sanctions strategy against Moscow.

“Would you say that putting secondary sanctions on India, the largest purchaser outside China, they are almost equal. Would you say there was no action? That cost hundreds of billions of dollars to Russia, you call that no action? I haven’t done Phase-2 yet or Phase-3,” Trump stated while addressing the media.

The remarks reinforced Trump’s earlier threat when he declared that India would face “big problems” if it did not reduce its Russian oil purchases.

“Two weeks ago, I said if India buys, India has got big problems, and that’s what happens,” Trump added.

India already facing 50% tariffs

India has already been subjected to steep trade levies, with Washington imposing a 25% tariff on Indian goods earlier in August. This was followed by an additional 25% secondary sanction on August 27, effectively doubling the total tariff burden to 50%. The move marked one of the harshest trade measures imposed on India in recent years, highlighting the growing strain in US-India economic relations.

Trump framed these sanctions not merely as punitive measures against India but as direct economic action against Russia, designed to weaken Moscow’s ability to fund its war effort. By targeting major buyers of Russian oil, Washington aims to indirectly choke Russia’s export revenues.

Temporary suspension of tariffs on China

In contrast to India’s escalating tariff burden, the US has temporarily suspended new tariffs on China until November 2025. The suspension has raised questions among analysts about Washington’s selective approach. While India is being punished heavily for continuing Russian oil purchases, China—Russia’s largest energy partner—has been granted a temporary reprieve, suggesting that geopolitical calculations play a key role in Trump’s strategy.

Trump claims India offered “no tariff” deal

In a surprising twist, Trump revealed that New Delhi has offered him a “no tariff” trade arrangement in response to Washington’s aggressive tariff stance. Speaking on The Scott Jennings Radio Show, Trump claimed that India’s offer came only after the US raised duties significantly.

“India was the most highly tariffed nation in the world, and you know what, they’ve offered me no tariffs in India any more. If I didn’t have tariffs, they would never make that offer,” Trump said.

The claim underscores how Trump views tariffs not only as a trade enforcement tool but also as a means of extracting concessions from partners.

Implications for US-India relations

The escalating tariff war and warnings of Phase-2 and Phase-3 sanctions could severely impact the strategic partnership between Washington and New Delhi. While India has tried to balance relations with both the West and Russia, its energy dependence on Moscow has become a flashpoint in ties with the US.

Experts warn that further tariffs could hit Indian exports across key sectors such as textiles, technology, and pharmaceuticals, compounding economic challenges already heightened by global uncertainties.

At the same time, Trump’s framing of sanctions as a direct action against Russia rather than India leaves some room for negotiation, but New Delhi will face growing pressure to diversify its energy imports away from Moscow.

Conclusion

Trump’s latest warning underscores a new phase of economic coercion in US foreign policy, where tariffs and sanctions are deployed interchangeably to achieve geopolitical aims. For India, the path ahead is fraught with challenges—balancing its energy security needs with the mounting pressure from Washington to curb Russian imports.

As the US weighs the rollout of Phase-2 and Phase-3 tariffs, the stakes for India are higher than ever, and the outcome of this confrontation will shape not only US-India trade relations but also the global energy and geopolitical landscape in the months to come.

The Upcoming IPOs in this week and coming weeks are Airfloa Rail Technology, Dev Accelerator, Taurian MPS, Jay Ambe Supermarkets, Krupalu Metals, Urban Company, Shringar House of Mangalsutra, Vashishtha Luxury Fashion, Karbonsteel Engineering.

The Current active IPO are Sharvaya Metals, Vigor Plast India, Austere Systems, Optivalue Tek Consulting, Goel Construction Company.

Start your Stock Market Journey and Apply in IPO by Opening Free Demat Account in Choice Broking FinX.

Join our Trading with CA Abhay Telegram Channel for regular Stock Market Trading and Investment Calls by CA Abhay Varn - SEBI Registered Research Analyst.