Trump’s 10 Dangerous Moves Against India: Not Just Tariffs, But Strategic Economic Pressure Too

Washington/New Delhi, January 5, 2026: Former U.S. President Donald Trump has once again warned India over its import of Russian oil, signaling a possible escalation in trade tensions. While the focus is on tariffs, experts caution that India could face a broader set of economic and strategic challenges if the Trump administration adopts an aggressive trade stance.

Tariff Threats on Indian Products
Trump has indicated that U.S. tariffs on Indian goods could be raised up to 100%, far beyond current levels. The warning comes despite India’s record purchase of Russian oil in November 2025, which reached a six-month high in both quantity and value, accounting for 35% of India’s total oil imports. Trump acknowledged in a press interaction aboard Air Force One that Prime Minister Narendra Modi is aware of the U.S. dissatisfaction, implying that higher tariffs could be applied quickly.

Beyond Tariffs: Other Potential Economic Weapons
Experts warn that tariffs are only one of several levers Trump could use:

1. Tax on Dollar Remittances: Millions of Indians work in the U.S., sending billions of dollars home. Additional taxes or charges on remittances could directly impact India’s middle class and foreign exchange inflows.
2. Stricter H-1B and L-1 Visa Rules: Trump has previously tightened visa issuance for Indians. Further restrictions or reduced quotas could negatively affect India’s IT sector.
3. Pressure on Indian Diaspora: Trump could implement policies affecting Indian communities in the U.S., creating indirect political and economic pressure on the Indian government.
4. Increased Deportation of Illegal Immigrants: In his second term, Trump deported many undocumented Indian residents. A renewed aggressive approach could send large numbers back to India, putting pressure on the government.
5. Financial Regulatory Pressure: Limiting access of Indian banks and companies to U.S. markets could significantly impact trade and investment.

Recent Tensions Over Agricultural Imports
Trump’s recent warnings also targeted Indian rice exports. During a White House roundtable, U.S. farmer representatives raised concerns over alleged dumping by India, China, and Thailand. Trump reportedly questioned Treasury Secretary Scott Besant on whether Indian rice exports should face new tariffs, temporarily stalling India-U.S. trade negotiations.

Implications for India
These developments indicate that India may face a multi-pronged economic challenge, including high tariffs, trade restrictions, visa hurdles, and remittance taxes. Analysts caution that Trump’s moves could affect not just India’s economy but also domestic political dynamics.

As talks between the two countries continue, India must prepare for potential tariff escalations and other economic pressures while safeguarding strategic trade and investment interests.