Russian oil: US may not impose additional 25% tariffs on India

PTI

New York/New Delhi

President Donald Trump has indicated that the US may not impose secondary tariffs on countries continuing to procure Russia crude oil.

There were apprehensions that additional secondary tariffs would have hit India in case the US decided to enforce them.

Trump imposed tariffs totalling 50 per cent on India, including 25 per cent for Delhi’s purchases of Russian oil that will come into effect from August 27.

“Well, he (Russian President Vladimir Putin) lost an oil client, so to speak, which is India, which was doing about 40 per cent of the oil. China, as you know, is doing a lot…And if I did what’s called a secondary sanction, or a secondary tariff, it would be very devastating from their standpoint. If I have to do it, I’ll do it. Maybe I won’t have to do it,” Trump said on Friday.

The US President made the remarks in an interview with Fox News aboard Air Force One en route to Alaska for a high-stakes summit meeting with Putin.            The meeting concluded without any agreement on ending the Russia-Ukraine war.

A US team, which was scheduled to visit India from August 25, for the next round of negotiations for the proposed bilateral trade agreement is likely to defer the meeting to a later date, an official said.

So far, five rounds of talks have been completed for the proposed bilateral trade agreement and a US team is scheduled to visit India for the sixth round of talks.

The negotiations were scheduled from August 25-29.

“This visit is likely to be rescheduled,” the official, who did not wish to be named, said.

Deferment or rescheduling of the meeting assumes significance as the US has announced a staggering 50 per cent duty on Indian goods.

On Wednesday, US treasury secretary Scott Bessent had said if “things don’t go well” between Trump and Putin at the summit meeting, then secondary sanctions on India for purchasing Russian oil could go up.

In an interview with Bloomberg, Bessent said, “I think everyone has been frustrated with President Putin. We expected that he would come to the table in a more fulsome way. It looks like he may be ready to negotiate.”

“And we put secondary tariffs on the Indians for buying Russian oil. And I could see, if things don’t go well, then sanctions or secondary tariffs could go up,” he added.

On whether sanctions can go up or loosened, Bessent had said, “Sanctions can go up, they can be loosened. They can have a definitive life. They can go on indefinitely.”

Responding to the tariffs, the ministry of external affairs has said that the targeting of India is unjustified and unreasonable.

“Like any major economy, India will take all necessary measures to safeguard its national interests and economic security,” it said.