Trump Threatens To "Substantially" Raise Tariffs On India Over Russian Oil
"Because of this, I will be substantially raising the Tariff paid by India to the USA," he said without specifying what tariff level he had in mind.
His post comes days after his announcement that 25 percent tariff would be imposed on goods imported from India, adding that the country would also face an unspecified penalty, but gave no details.
Government sources, however, told NDTV that the tariff would have a "negligible" impact on the Indian economy.
The GDP loss is not likely to exceed 0.2 per cent, sources said.
Over the weekend, sources in the government told NDTV that Indian oil firms will not be halting Russian imports as "India's energy purchases are driven by national interests and market forces".
Trump's threat follows his increasingly souring relationship with Russia for failing to agree to a ceasefire in Ukraine. He even threatened new economic sanctions if progress was not made.
India, the world's third-largest crude importer after China and the US, historically bought most of its oil from the Middle East, but this changed after Russia began selling its oil at discounted rates after the West shunned it as punishment for its full-scale invasion of Ukraine in February 2022.
The same year, External Affairs Minister S Jaishankar defended India's decision and said, "India's total purchase of oil from Russia in a month is probably less than what Europe does in an afternoon". He was addressing a press conference in Washington.
India purchases up to 2 million barrels per day of oil, accounting for 2 per cent of global supply. Other top buyers are China and Turkey.
Last week, Trump declared that the US has a massive trade deficit with India, accusing it of having the "most strenuous and obnoxious non-monetary Trade Barriers of any country".
"While India is our friend, we have, over the years, done relatively little business with them because their tariffs are far too high, among the highest in the world, and they have the most strenuous and obnoxious non-monetary Trade Barriers of any country," he said.
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