Fresh from flexing US power abroad, Donald Trump shifts his pressure tactics to India, rattling markets and raising fears of a deeper trade confrontation over Russian oil imports.
President Donald Trump has issued a sharp warning to India, saying import duties on Indian goods will be increased further if New Delhi does not comply with US demands to limit its purchases of crude oil from Russia. The remarks come at a time when trade negotiations between the two countries have already failed to reach a breakthrough, placing additional pressure on India’s economy and policymakers.
Speaking to journalists aboard the official Air Force One aircraft, President Trump commented on his relationship with Prime Minister Narendra Modi, saying, “Prime Minister Modi is a good person. But he knew that I was unhappy. It would be important for him to make me happy.” The statement has been widely interpreted as a direct signal that Washington expects immediate concessions.
Trump also warned that the United States could move swiftly to raise import duties on Indian goods if its concerns are ignored. Last year, the US doubled tariffs on Indian imports to 50 percent, citing India’s large-scale purchases of Russian crude oil. Trade experts estimate that 25 percent of the current tariff burden is directly linked to Russian oil imports.
Adding to the pressure, Republican Senator Lindsey Graham said he supports legal measures that could impose punitive taxes of up to 500 percent on countries like India that continue buying Russian oil.
Following Trump’s comments, India’s Information Technology Index, known as NIFTYIT, fell by 2.5 percent on Monday, reflecting investor anxiety over worsening US India trade relations and possible delays to future trade agreements.
Reports suggest India has begun cutting back on Russian oil purchases. Reliance Industries has confirmed it has not ordered Russian crude for January and has received no shipments in the past three weeks. However, India’s Commerce Ministry has yet to issue an official response.
