Trump targets India-Russia friendship with penalty move, biggest reason for US President Trump's frustration was...,Bankrupt Pakistan...
'…Also, they have always bought a vast majority of their military equipment from Russia, and are Russia's largest buyer of ENERGY, along with China, at a time when everyone wants Russia to STOP THE KILLING IN UKRAINE – ALL THINGS NOT GOOD! INDIA WILL THEREFORE BE PAYING A TARIFF OF 25%, PLUS A PENALTY FOR THE ABOVE, STARTING ON AUGUST 1st. THANK YOU FOR YOUR ATTENTION TO THIS MATTER. MAGA!', the US President in a post on Truth Social said. What prompted Trump to impose penalties on India's Russia ties?
He stated that India has relied on Russia, in part, for nearly all of its military supplies and is one of Russia's largest buyers of Russian energy, alongside China. Meanwhile, India has consistently maintained that Russia is a trusted, all-weather ally that has supported it for decades.
In a recent confrontation with Pakistan, India had engaged its S-400 air defense system, purchased from Russia. The U.S., which in the past had refused to supply weapons to India, now expresses frustration over India's continued defense ties with Russia. Why is the US frustrated with India's continued purchase of Russian oil?
The announcement is being seen as a pressure tactic to get New Delhi to agree to demands made by the US, which has, in recent days, got favourable trade deals with major partners like Japan, the UK and the European Union.
The penalty was announced as India has made large purchases of oil and military equipment from Russia. India is the first country to face a penalty for Russian imports. Previously, Trump slapped high tariffs on China but refrained from levying any penalty despite Beijing being Russia's largest oil importer.
India's import of crude oil from Russia has risen from 0.2 per cent of total purchases before the Russia-Ukraine war to 35-40 per cent. New Delhi is the largest buyer of Russian oil after China.
Brahma Chellaney, India's leading strategist, noted on social media platform X that using trade measures as instruments in economic warfare – such as former President Trump's decision to impose a 25% duty on Indian goods and impose sanctions on India for its continued purchasing of Russian oil and thus the first use of U.S. 'secondary tariffs' – was further worsening already strained bilateral relations.
In a post on X(previously Twitter), Brahma Chellaney, India's leading strategist wrote,'Use of trade measures as economic warfare: Trump's decision to impose a 25% tariff on Indian goods — along with a punitive levy for India's continued purchase of Russian oil, in the first U.S. use of 'secondary tariffs' — threatens to further strain an already fraying bilateral relationship.'
'India refrained from retaliating against Trump's earlier tariffs on its auto parts, steel and aluminum exports, opting instead for negotiation (despite formally notifying the WTO of planned countermeasures). But with Washington pressing maximalist demands for unfettered access to India's vast and expanding market, progress on a bilateral trade deal has stalled,' he added.
According to the media reports, experts believe that the issue of buying Russian oil will not be something that India would be willing to compromise on simply because the United States asked. Earlier, External Affairs Minister S. Jaishankar has said India will act in the interests of its citizens and will buy oil from whichever country sells it for the best price.
India has stood up for its choice to purchase Russian oil since the beginning of the war in Ukraine. In December 2022, Jaishankar commented that he recognized that there was a war in Ukraine and that Europe has its view of the conflict but the decisions Europe makes for its energy needs is its own business. However, he emphasized that Europe should not expect India to act differently while doing the same for itself. How does Pakistan's economic situation relate to Trump's anger towards India?
Hours after announcing 25 per cent tariffs with additional penalties on India, US President Donald Trump on Wednesday (local time) announced a trade deal with Pakistan, touting a joint initiative to develop oil reserves in India's terror-harbouring neighbour and even floated the idea that 'some day' Islamabad might sell oil to New Delhi. In a post on Truth Social, Trump stated that the United States and Pakistan are currently in the process of selecting the oil company for the partnership.
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