Trump signals tougher tariffs on India amid Russian oil concerns

US President Donald Trump has warned that Washington could raise tariffs on India “very quickly” if New Delhi does not curb its purchases of Russian oil, saying Prime Minister Narendra Modi was aware of his concerns.

Speaking to reporters on Sunday aboard Air Force One while returning to Washington DC from Florida, Trump said India’s trade ties with Russia had put it at risk of further tariff action by the United States.

“Modi is a very good man; he 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. It would be very bad for them.”

Trump made the remarks in response to a question on India’s continued purchases of Russian oil. India’s commerce ministry did not immediately respond to a request for comment.

The United States last year doubled import tariffs on Indian goods to 50 per cent, citing India’s heavy buying of Russian oil. Despite the higher tariffs, India’s exports to the US rose sharply in November, trade data showed.

Encouraged by the improved export numbers, Indian officials have maintained a firm position against US trade demands, signalling limited flexibility in areas such as agricultural imports. At the same time, data indicates that India’s oil purchases from Russia have declined in recent months.

Reuters reported last week that India has asked refiners to provide weekly disclosures of Russian and US oil purchases. People familiar with the matter said Russian crude imports are expected to fall below one million barrels per day as New Delhi seeks to finalise a trade deal with Washington.

Trump said sanctions were “hurting Russia very badly” and referenced India while discussing measures aimed at increasing pressure on Moscow. US Senator Lindsey Graham, who was travelling with Trump on Air Force One, said the tariffs imposed by the US were the “chief reason” India was now buying substantially less Russian oil.

Graham, who is backing legislation proposing 500 per cent levies on imports from countries buying Russian oil, said pressure must be applied to customers of Russian President Vladimir Putin to end the Russia-Ukraine conflict. He added that the US had imposed a 25 per cent tariff on India for buying Russian oil.

“I was at the Indian Ambassador’s house about a month ago and all he wanted to talk about is how they are buying less Russian oil. ‘Would you tell the President to relieve the tariff?’” Graham said.

Modi has spoken to Trump at least three times over the phone since the tariffs were imposed, though the discussions have remained inconclusive. Last month, India’s Commerce Secretary Rajesh Agrawal met US Deputy Trade Representative Rick Switzer in New Delhi to discuss bilateral trade and economic ties.

(With inputs from agencies)