WASHINGTON: US President Donald Trump said on Monday he will substantially raise tariffs on India over its purchases of Russian oil.
“India is not only buying massive amounts of Russian Oil, they are then, for much of the Oil purchased, selling it on the Open Market for big profits. They donât care how many people in Ukraine are being killed by the Russian War Machine,” Trump said in a post on Truth Social.
“Because of this, I will be substantially raising the Tariff paid by India to the USA.”
He did not elaborate on what the tariff would be.
Trump last week said he would impose a 25% tariff on goods imported from India and added that the world’s fifth-largest economy would also face an unspecified penalty but gave no details.
Over the weekend, two Indian government sources told Reuters that India will keep purchasing oil from Russia despite Trump’s threats. The sources did not wish to be identified due to the sensitivity of the matter.
A day earlier, a top aide to President Trump accused India of effectively financing Russia’s war in Ukraine by purchasing oil from Moscow.
“What he (Trump) said very clearly is that it is not acceptable for India to continue financing this war by purchasing the oil from Russia,” said Stephen Miller, deputy chief of staff at the White House and one of Trump’s most influential aides.
“People will be shocked to learn that India is basically tied with China in purchasing Russian oil. That’s an astonishing fact,” Miller said on Fox News’ “Sunday Morning Futures.”
‘Dead economies’
Earlier on July 31, President Trump assailed India and Russia over trade, saying that he didn’t care what either of them did.
“I don’t care what India does with Russia. They can take their dead economies down together, for all I care,” President Trump said in a post on X.
“We have done very little business with India, their Tariffs are too high, among the highest in the World,” the president added.
The scathing remarks follow Trump’s earlier statement, where he said that Washington and New Delhi were in the process of negotiating a trade deal.
The 25% tariff, as well as an unspecified penalty, would strain relations with the world’s most populous democracy.
The 25% figure would single out India more severely than other major trading partners, and threaten to unravel months of talks between the two countries, undermining a strategic partner of Washingtonâs and a counterbalance to China.
Responding to the 25% tariff post by Trump, the Indian government said it was studying the implications of Trump’s announcements and remained dedicated to securing a fair trade deal.
Regarding Trump’s threat, what the penalty would be is not yet clear. The US president had initially indicated it was for India buying Russian arms and oil, and its non-monetary trade barriers.
When asked about the penalty at the White House, he said it was partly due to trade issues and partly because of India’s involvement in the BRICS group of developing nations, which he described as hostile to the US Trump in July said the US will impose an additional 10% tariff on any countries aligning themselves with the “Anti-American policies” of the BRICS.
