The United States could raise tariffs on Indian goods if New Delhi does not help on concerns related to Russian oil, American President Donald Trump told reporters aboard Air Force One.”… They wanted to make me happy, basically… PM Modi’s a very good man. He’s a good guy. He knew I was not happy. It was important to make me happy. They do trade, and we can raise tariffs on them very quickly,” claimed the US president. The United States, which was already looking to narrow its trade deficit with India, doubled import tariffs on Indian goods to 50% last year as punishment for its heavy purchasing of Russian oil. The two countries are currently negotiating a potential trade deal, though those talks have been fraught at times.ALSO READ: India asks refiners for weekly Russian oil import data as it seeks US trade deal, sources sayIndia became the biggest buyer of discounted Russian seaborne crude following the 2022 outbreak of the Ukraine war. But those purchases have fuelled a backlash from Western nations, which have targeted Russia’s energy sector with sanctions, arguing that oil revenues help fund Moscow’s war effort.Live EventsALSO READ: Despite US curbs, Rosneft supplies most Russian oilRussian oil issueThough many major world economies have succeeded in striking trade deals with Washington that reduced U.S. President Donald Trump’s initial crippling tariff rates, talks between New Delhi and Washington have so far failed to produce an agreement.Negotiations collapsed in late July after India resisted opening its market for U.S. farm products and denied Trump’s role in mediating during a brief conflict between India and Pakistan. Trump, meanwhile, doubled the tariff rates on Indian goods in August.Trump and Modi have continued to talk, however, and negotiations have resumed, though India’s Russian oil purchases remain a stumbling block.While Trump said in October that Modi had pledged to stop buying Russian oil, New Delhi has publicly resisted U.S. pressure, arguing that Russian imports are vital to its energy security.Stricter U.S. and European Union sanctions have already slowed Russian oil flows to India, which fell to a three-year low of about 1.2 million bpd in December, according to sources and analytics firm Kpler. That marks a roughly 40% drop from a June peak of around 2 million bpd.
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