WASHINGTON/ NEW DELHI, Aug 4: In a fresh trade threat against India, President Donald Trump on Monday said he will “substantially” raise US tariffs on New Delhi, accusing it of buying massive amounts of Russian oil and selling it for big profits.
Last week, the Trump administration slapped a 25 per cent duty on all Indian goods. The US president also announced a penalty for buying “vast majority” of Russian military equipment and crude oil, but no mention was made in the notification.
“India is not only buying massive amounts of Russian Oil, they are then, for much of the Oil purchased, selling it on the Open Market for big profits,” Trump said in a social media post on Monday.
“They don’t care how many people in Ukraine are being killed by the Russian War Machine. Because of this, I will be substantially raising the Tariff paid by India to the USA,” he added.
In a measured reaction, India said it will take all necessary steps to safeguard and promote national interest and that the implications of the tariffs are being examined.
On August 1, Trump signed an Executive Order titled “Further Modifying The Reciprocal Tariff Rates”, raising tariffs for over five dozen countries, including a steep 25 per cent for India.
The executive order, however, did not mention the “penalty” that Trump had said India will have to pay because of its purchases of Russian military equipment and energy.
From a market share of just 0.2 per cent in India’s import basket before the start of the Russia-Ukraine conflict, Russia overtook Iraq and Saudi Arabia to become India’s No.1 supplier, with a share as high as 40 per cent at one point of time.
In July, Russia supplied 36 per cent of all crude oil imported by India. (PTI)
