Trump Threatens Higher Tariffs on India Over Russian Oil
The US could raise tariffs on India if New Delhi doesn't meet Washington's demand to curb purchases of Russian oil, President Donald Trump told reporters aboard Air Force One.
"Modi is a good guy. He knew I was not happy, and it was important to make me happy," Trump said.
"They do trade, and we can raise tariffs on them very quickly," Trump said in response to a question on India's Russian oil purchases.
The US doubled import tariffs on Indian goods to 50 percent last year as punishment for its heavy buying of Russian oil. Despite the hefty tariffs, India's exports to the U.S. leapt in November.
Encouraged by the improved trade data, Indian officials have maintained a firm stance against US trade demands, signalling limited flexibility in areas such as agricultural imports, while data shows India's oil purchases from Russia have declined.
India is asking refiners for weekly disclosures of Russian and US oil purchases, people familiar with the matter told Reuters last week, adding that they expect Russian crude imports to dip below one million barrels per day as New Delhi seeks to clinch a trade deal with Washington.
Modi has spoken to Trump at least three times over the phone since he imposed tariffs, but the discussions remain inconclusive.
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India's Commerce Secretary Rajesh Agrawal met US Deputy Trade Representative Rick Switzer to discuss bilateral trade and economic ties last month in Delhi.
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Analysts say Washington’s pressure on India over Russian oil underscores the broader U.S. strategy to tighten enforcement of sanctions on Moscow while leveraging trade relationships with major emerging economies.
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India, the world’s third-largest oil importer, has consistently defended its energy purchases on the grounds of affordability and energy security, arguing that discounted Russian crude has helped contain domestic inflation.