US threatens to impose more tariffs on India for buying Russian oil
President Trump's upcoming meeting with Putin on August 15th in Alaska will significantly impact US-India trade relations. Current 50% tariffs on Indian goods, imposed due to India's purchase of Russian oil, could increase if the summit fails to address the Ukraine conflict.
New Delhi: The President of the United States, Donald Trump, has already imposed a total of 50 per cent tariff on India. Now, US Treasury Secretary Scott Bessent issued a warning on Wednesday that Washington could increase tariffs on India if the impending meeting between Trump and Russian President Vladimir Putin does not go well.
When will Trump and Putin meet?
Trump and Putin are scheduled to meet on August 15 in Alaska. The meeting is taking place as Trump wants to end Moscow's war in Ukraine. In February 2022, Russia began a full-scale invasion of the country, which triggered global chaos.
What did the US Treasury Secretary say?
Bessent, while speaking with Bloomberg TV, said, "We've put secondary tariffs on Indians for buying Russian oil. And I could if things don't go well, then sanctions or secondary tariffs could go up."
At first, Trump imposed a 25 per cent tariff on Indian goods. Later, on August 7, he imposed an additional 25 per cent tariff on India for purchasing oil from Russia. At present, the total tariff imposed by the US on India is at 50 per cent. It is the highest among all the trading partners of the US except Brazil, with Trump imposing 50 per cent tariff on them as well.
Trump cited India's purchase of Russian oil as the reason behind the imposition of the additional tariff. He said that India is "fueling Russia's war machine", adding that he is not going to be happy if the country does that. Also, Trump has warned Russia of severe consequences if the war in Ukraine is not stopped. He told reporters that Putin do not agree to stop the war after the Alaska meeting, Russia will face actions.
Bessent said, "President Trump is meeting with President Putin, and the Europeans are in the wings, carping about how he should do it, what he should do. The Europeans need to join in these sanctions. The Europeans need to be willing to put on these secondary sanctions." He added that the "Europeans to come in and help create more leverage".