Trump warns India of even higher tariffs over Russia oil

United States President Donald Trump has warned that Washington could raise further tariffs on Indian exports if New Delhi does not stop buying Russian oil, adding fresh uncertainty to efforts to strike a trade deal between the two countries.

- SHREYA NANDI

"They (India) wanted to make me happy, basically. (Prime Minister Narendra) Modi is a very good man; he is a good guy. He knew I was not happy, and it was important to make me happy. They do trade and we can raise tariffs on them very quickly. It would be very bad for them," Trump told reporters aboard Air Force One, referring to India's recent reduction in purchases of Russian crude oil.

The US imposed a 50 per cent tariff on India, effective from August 27, covering nearly 55 categories of exports from New Delhi to Washington. Of this, 25 percentage points are directly linked to India's continued purchase of Russian oil. India cut its crude imports from Russia by about 38 per cent in December against November, marking a three year low.

Since February last year, India and the US have been engaged in talks aimed at securing a trade deal. However, India's reluctance to fully halt purchases of Russian crude, along with disagreements over market access, have emerged as major sticking points in concluding the agreement, which is expected to address the burden of the 50 per cent tariff on Indian exporters.