The United States may increase tariffs on India if New Delhi does not comply with Washington’s demand to reduce its purchases of Russian oil, President Trump said. This move adds more pressure on India as trade discussions remain unresolved.
PM Modi is a good guy. He knew I was not happy, and it was important to make me happy,” Trump told reporters on Air Force One. “They do trade, and we can raise tariffs on them very quickly,” he responded when asked about India’s oil purchases from Russia.
Trump Warning to India of Higher Tariffs
India’s commerce ministry did not immediately reply to a request for comment. Trump’s remarks come after months of trade discussions following the U.S. decision to double import tariffs on Indian goods to 50% last year as a penalty for India’s significant purchases of Russian oil.
On Monday, Indian markets reacted. The information technology stock index dropped about 2.5% to its lowest level in over a month. Investors are concerned that strained trade relations could further delay a trade agreement between the U.S. and India.
US Administration Plans to Impose Tariffs up to 500%
Republican Senator Lindsey Graham, a close ally of Trump who was traveling with him, mentioned that U.S. sanctions on Russian oil companies and higher tariffs on India had reduced Indian oil imports.
Graham is supporting legislation to impose tariffs of up to 500% on countries like India that continue to purchase Russian oil. “If you are buying cheap Russian oil, you keep Putin’s war machine going,” he said, adding that “we are trying to give the President the ability to make that a hard choice through tariffs.”
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