Trump threatens India with additional tariffs for buying Russian oil
President Trump announced substantially increased tariffs on Indian goods, citing India's significant purchases of Russian oil and its resale for profit. He further criticised India's trade barriers and its membership in BRICS, a group he deems anti-American.
New Delhi: Days after announcing a 25 per cent tariff on goods imported from India, US President Donald Trump has further threatened New Delhi with "substantially" increased tariffs, citing India's significant purchases of Russian oil and its alleged resale on the open market for profit. Trump also pointed to India's existing trade barriers and its membership in the BRICS group of developing nations, which he described as "hostile" to the US.
In a post on his TruthSocial account, President Trump stated, "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. Because of this, I will be substantially raising the Tariff paid by India to the USA."
This latest pronouncement follows President Trump's earlier announcement on Wednesday regarding a 25 per cent tariff on Indian imports, slated to take effect on August 7. The President also indicated an unspecified penalty in a separate social media post, actions that could significantly strain relations between the two countries.
"They have one of the highest tariffs in the world now, they're willing to cut it very substantially," Trump told reporters. "We're talking to India now - we'll see what happens ... You'll know by the end of this week."
The proposed 25 per cent tariff singles out India more severely than many other major trading partners, potentially unravelling months of trade negotiations and undermining India's strategic importance as a counterbalance to China. The exact nature of the penalty remains unclear, though Trump initially linked it to India's purchases of Russian arms and oil, as well as its "obnoxious non-monetary Trade Barriers."
When questioned about the penalty at the White House, Trump elaborated that it was due to a combination of trade issues and India's involvement in BRICS, a group he characterised as anti-American. He had previously stated in July that the U.S. would impose an additional 10 per cent tariff on imports from countries aligning with "anti-American policies" of BRICS.
The announcement regarding India came as countries faced a Friday deadline to reach agreements on reciprocal tariffs, or face tariffs imposed by the Trump administration. The White House had also released a series of other trade policy announcements on Wednesday.