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Trump threatens India again with tariffs on Russian oil

Donald Trump, the U.S. president, threatened again on Monday to increase tariffs on Indian goods over their Russian oil purchases. New Delhi, however, called the attack "unjustified", and pledged to protect its own economic interests. This further exacerbated the trade gap between the two nations.

In a post on social media, Trump stated that "India not only buys massive amounts of Russian Oil but they also sell it for a large profit to the Open Market." They don't give a damn how many Ukrainians are killed by the Russian War Machine.

He added, "I will substantially raise the Tariffs paid by India to USA because of this."

In response, a spokesperson from India's Foreign Ministry said that India would "take all necessary steps to safeguard its economic and national security."

The spokesperson also added, "The targeting India is unjustified" and "unreasonable".

Trump said that he would impose new sanctions against Russia and countries that purchase its energy exports from Friday, unless Moscow took steps to end the 3-1/2-year war with Ukraine. Vladimir Putin, the Russian president, has not shown any public signs of changing his stance in spite of the deadline.

Two Indian government sources said that India would continue to purchase oil from Russia, despite Trump's threat.

Since Russia invaded Ukraine at the beginning of 2022, India has been under pressure to distance itself. New Delhi has refused, citing economic and long-standing ties to Russia.

Trump announced in July that he would impose 25% tariffs on Indian goods. U.S. officials cited geopolitical factors as obstacles to a U.S. India trade agreement.

Trump has also portrayed the BRICS as a group of developing countries hostile to the United States. These nations have rejected his accusations, saying that the group serves the interests of all developing countries and its members.

CRUDE BUYER

India is the largest buyer of Russian crude oil by sea. It imported about 1.75 millions barrels of Russian oil per day from January to June of this year. This was an increase of 1% compared to a year earlier, according to trade sources.

The Indian spokesperson stated that the country began to import oil from Russia after traditional supplies had been diverted to Europe following the outbreak of conflict in Ukraine. He called it a necessity compelled by the global market conditions.

The spokesperson noted also the West's bilateral trade, especially with the European Union: "It's revealing that those nations who criticize India indulge in trade with Russia."

Sources say that despite the Indian government's defiance last week, the country's major refiners stopped buying Russian oil. After Trump threatened to impose hefty tariffs, discounts for other suppliers have narrowed.

Officials of the Indian government deny any policy changes.

Four trade sources said on Monday that India's largest refiner Indian Oil Corp. has purchased 7 million barrels from the United States and Canada, as well as the Middle East.

India is also frustrated that Trump has repeatedly claimed credit for the ceasefire between India and Pakistan, which he announced in May on social media. This ended days of hostilities.

Richard Rossow, director of the India Program at Washington's Center for Strategic and International Studies, says that the unpredictable nature of the Trump administration is a challenge for Delhi.

He said that India's continued purchases of energy and defence from Russia present a greater challenge because it does not know how the Trump administration is going to approach Russia month-to-month. Reporting by Kanishka, Doina, and David Brunnstrom from Washington; Harshita, Meenaktshi, and Manoj, Patel, and Shivam Patel in New Delhi. Writing by Joseph Ax. Editing by Bill Berkrot, Rosalba, and Rosalba Ax.

(source: Reuters)