Trump Warns of Increased Tariffs on India Over Russian Oil Imports

Trump's Stance on Indian Oil Imports

On Monday, President Donald Trump indicated that the United States might impose higher tariffs on India if the country fails to align with US expectations regarding Russian oil imports.

During a press briefing, Trump expressed his desire for increased cooperation from India in curbing its Russian oil purchases, emphasizing the importance of trade relations between the two nations.

He remarked, “They wanted to make me happy, basically… Prime Minister [Narendra] Modi is a very good man. He understood my dissatisfaction. It was crucial for them to address my concerns. They engage in trade, and we can swiftly raise tariffs on them.”

In the absence of a trade agreement with the US, Indian products are currently subjected to a total tariff rate of 50%. This includes a 25% reciprocal duty imposed on August 7, followed by an additional 25% punitive tariff introduced on August 27.

These punitive tariffs were part of Trump's strategy to pressure nations buying discounted oil from Russia amid the ongoing conflict in Ukraine.

On November 10, Trump stated that the US would eventually reduce the tariffs on India, claiming that New Delhi has significantly decreased its Russian oil purchases.

“At present, the tariffs on India are quite high due to Russian oil, but they have curtailed their Russian oil imports,” Trump noted. “It has been reduced considerably… We will lower the tariffs at some point.”

Trump also mentioned that the US was nearing a “fair deal” with India.

The US president has consistently accused India of financing Russia's war against Ukraine through its oil purchases.

On October 15, Trump claimed that Prime Minister Modi had agreed to stop Indian imports of Russian oil “soon,” labeling it a significant halt.

India’s Ministry of External Affairs did not confirm or deny Trump's assertions but reiterated that the country aims to maintain stable energy prices and secure supplies as part of its energy policy.

However, ministry spokesperson Randhir Jaiswal later clarified that, according to his information, no phone call had occurred between Modi and Trump that day.

Following the announcement of the punitive tariffs, New Delhi expressed that it was “extremely unfortunate” for the US to impose additional tariffs on India for actions that other nations are also undertaking in their national interests.

Recently, trade discussions between the two countries have gained renewed momentum.

On December 15, Commerce Secretary Rajesh Agrawal stated that India and the US are “very close” to finalizing an initial trade agreement regarding tariffs, although he did not provide a specific timeline.

A delegation of Indian officials led by Agarwal visited Washington DC in October for trade negotiations with the US. In September, Union Commerce Minister Piyush Goyal also led a team to New York for discussions.

When asked about the trade negotiations, Trump remarked on November 10: “We are making a deal with India, significantly different from previous agreements. They may not be fond of me now, but they will appreciate us again.”

He added, “We are working towards a fair trade deal. Previous agreements were quite unfair... But we are getting close.”