US President Donald Trump on Monday said he will be “substantially” raising the tariff paid by India to America, accusing the country of buying massive amounts of Russian oil and selling it for big profits.”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. Thank you for your attention to this matter!!!”His post comes days after his announcement that 25 percent tariff would be imposed on goods imported from India, adding that the country would also face an unspecified penalty, but gave no details.ALSO READ: ‘US itself indulging in trade with Russia’: India hits back after Trump’s latest tariff threat ET OnlineIndia has become one of Trump’s top targets as he looks to pressure Russian President Vladimir Putin to end his war in Ukraine. The US president had lashed out at India last week as well, criticizing it for joining the BRICS grouping of developing countries and maintaining close ties with Russia, saying “they can take their dead economies down together.”Live EventsThe rebuke marked a stunning shift in tone for the US, which for years had overlooked India’s close historical ties with Russia as it courted the nation as a counterweight in Asia to China. Now, Trump appears willing to undo that strategy to gain leverage against Putin, who has resisted the US president’s efforts to end the fighting in Ukraine.ALSO READ: PM Modi defiant as Trump steps up pressure on India’s Russia oil purchasesDespite escalating tensions, New Delhi has signaled its willingness to keep trade talks with Washington alive. Yet, analysts don’t expect too many concessions for the world’s fastest-growing major economy. In the recently inked India-UK trade agreement, Modi showed little appetite for opening up sensitive sectors like agriculture and dairy, both high on the White House’s wish list, wrote Trinh Nguyen, senior economist at Natixis. “The UK deal shows that India’s policy risk appetite has risen but it will do so at its own pace,” she wrote.‘Get Real’Stephen Miller, Trump’s deputy chief of staff, on Sunday accused India of imposing “massive” tariffs on American goods and “cheating” the US immigration system in addition to purchasing about as much Russian oil as China.“President Trump, he wants a tremendous relationship and has had always a tremendous relationship with India and the prime minister,” Miller said. “But we need to get real about dealing with the financing of this war.”“So, President Trump, all options are on the table to deal diplomatically, financially and otherwise with the ongoing war in Ukraine, so we can achieve peace,” Miller added.Trump last week told reporters he “heard” India would no longer be buying oil from Russia, calling it “a good step.” Bloomberg reported last week that refiners were told to come up with plans for buying non-Russian crude, but one of the people said the instruction amounted to scenario planning in case Russian crude were to become unavailable.The New York Times reported Saturday that India would keep buying Russian crude despite a threat of penalties from Trump, citing two senior Indian officials it didn’t identify. India’s refiners have been singled out by the European Union and the US for supporting Moscow during its war in Ukraine with the oil purchases. It has become the world’s biggest buyer of Russian seaborne exports of crude, soaking up discounted barrels and ramping up its purchases from almost zero to about one-third of its imports.Although China is the primary economic and diplomatic backer of Russia, Trump’s leverage against the world’s second-biggest economy is limited due to Beijing’s control of rare-earth magnets the US needs to make high-tech goods. The US and China have held talks in recent months aimed at stabilizing the relationship after they both hiked tariffs on each other’s goods well beyond 100% earlier this year.India’s next steps hinge on the severity and duration of any potential penalties. “Just as Mr. Trump is doing his own cost-benefit analysis for America, each government will do its own analysis,” said Devendra Pant, chief economist of India Ratings, the local arm of Fitch.India-Russia partnershipIndia has defended its ties with Russia, one of its biggest suppliers of weapons dating back to the Cold War. The two nations have a “steady and time-tested partnership,” Indian Foreign Ministry spokesperson Randhir Jaiswal told reporters on Friday.“Our bilateral relationships with various countries stand on their own merit and should not be seen from the prism of a third country,” Jaiswal said. Asked about ties with the US, he added that he’s “confident that the relationship will continue to move forward.”India expects US trade negotiators to visit the country toward the end of the month to continue talks on a bilateral deal, an official in New Delhi said Friday. The nation will hold its ground and won’t give the US access to its dairy and agriculture sectors, the official said, citing political and religious sensitivities.PM Modi’s renewed emphasis on domestic manufacturing and consumption echoes his long-standing “Make in India” initiative. However, the message has taken on new urgency after the US tariffs.(With agency inputs)
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