Donald Trump says he will substantially raise tariffs on goods from India over its Russian oil purchases, while New Delhi says it will take measures to safeguard its interests and calls its targeting by the US president “unjustified.”
Trump said last week Washington was still negotiating with India on trade after announcing the US would impose a 25 per cent tariff on goods imported from the country starting last Friday.
India has faced pressure from the West, including the US, to distance itself from Moscow after Russia invaded Ukraine in early 2022. New Delhi has resisted that pressure, citing its longstanding ties with Russia and economic needs.
“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. They don’t care how many people in Ukraine are being killed by the Russian War Machine,” Trump said in a post on Truth Social.
“Because of this, I will be substantially raising the Tariff paid by India to the USA.”
He did not elaborate on what the tariff would be.
Over the weekend, two Indian government sources told Reuters that India will keep purchasing oil from Russia despite Trump’s threats. The sources did not wish to be identified due to the sensitivity of the matter.
Washington has cited geopolitical disagreements with India to explain why it has not yet been able to reach a trade deal with New Delhi.
Other than India’s ties with Russia, Trump has cast the BRICS group of developing nations – of which India is a key part – as hostile to the US Those nations have dismissed that accusation, saying the group promotes the interests of its members and of developing countries at large.
A spokesperson for India’s foreign ministry said India will “take all necessary measures to safeguard its national interests and economic security.”
“In this background, the targeting of India is unjustified and unreasonable,” the spokesperson added.
India began importing oil from Russia because traditional supplies were diverted to Europe after the outbreak of the Ukraine conflict, the Indian statement said.
The spokesperson said India’s imports were meant to ensure affordable energy costs for Indian consumers and were a “necessity compelled by global market situation.”
The statement also noted the West’s, particularly the European Union’s, bilateral trade with Russia: “It is revealing that the very nations criticising India are themselves indulging in trade with Russia.”
India also has been frustrated by Trump repeatedly taking credit for an India-Pakistan ceasefire that he announced on social media on May 10. The ceasefire halted days of hostilities between the nuclear-armed Asian neighbours.
India’s position has been that New Delhi and Islamabad must resolve their issues directly without outside involvement.
Trump has reached a trade deal with Pakistan.
Elsewhere, Switzerland is ready to make a “more attractive offer” in trade talks with Washington, its government said on Monday, following a crisis meeting aimed at averting a 39 per cent tariff on Swiss goods that threatens to hammer its export-driven economy.
The Federal Council – the country’s governing cabinet – said it was determined to pursue discussions with the United States, if necessary beyond the August 7 deadline that President Trump has set for the tariff to come into effect.
“Switzerland enters this new phase ready to present a more attractive offer, taking US concerns into account and seeking to ease the current tariff situation,” it said in a statement.
Switzerland counts the US as its top export market for pharmaceuticals, watches, machinery and chocolates.
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