Trump Threatens India with Massive Tariffs in Russian Oil Dispute

US President Donald Trump has issued a stark warning to India. He stated the country would face massive new tariffs if it continues purchasing Russian oil. The comments were made to reporters aboard Air Force One on Sunday.

This escalates a ongoing trade dispute between the two nations. The US government contends that petroleum revenue helps fund Russia’s war in Ukraine.

Contested Conversation with Prime Minister Modi

President Trump claimed he spoke with Indian Prime Minister Narendra Modi. He said Modi assured him India would stop buying Russian oil. This claim has been met with confusion.

According to Reuters, India’s foreign ministry stated it was unaware of any such conversation. An official instead emphasized India’s primary goal is to safeguard its consumers’ interests. This discrepancy highlights the tense nature of the talks.

Trump responded directly to India’s denial. He said if they deny the conversation, they will simply pay the massive tariffs. Half of his current 50% tariffs on Indian goods are already a retaliation for these oil purchases.

India’s Growing Reliance on Russian Crude

India has become the largest buyer of seaborne Russian oil. This happened after Western nations imposed sanctions following the 2022 invasion of Ukraine. Russian oil is sold to India at a significant discount.

This discounted oil is crucial for India’s energy security. It helps control domestic fuel prices for its vast population. However, it has become a major irritant in US-India relations.

Data from commodities firm Kpler shows the scale of the issue. India’s imports of Russian oil are set to rise about 20% this month. They are expected to reach 1.9 million barrels per day.

The threat of massive tariffs marks a critical moment in US-India trade relations. The outcome of this dispute over Russian oil will have significant consequences for global energy markets and diplomatic alliances.

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What did President Trump claim about a call with India’s leader?

President Trump stated he spoke with Prime Minister Modi. He claimed Modi told him India would stop purchasing Russian oil. Indian officials have said they are not aware of this conversation.

Why does the US want India to stop buying Russian oil?

The US government says oil revenue funds Russia’s war in Ukraine. Western nations have shunned Russian oil and imposed sanctions. Purchases from other countries undermine these efforts.

How much Russian oil does India currently import?

India is the biggest buyer of seaborne Russian crude. Estimates from Kpler show imports are set to hit 1.9 million barrels per day this month. This represents a significant increase from previous levels.

Are trade talks between the US and India still ongoing?

An Indian government official said talks are continuing in a congenial manner. A delegation was recently in the US for discussions. The official did not share specific details about the progress.

Has India already reduced its Russian oil purchases?

A White House official said India has halved its purchases. However, Indian sources said no immediate reduction is visible. Any cuts may only appear in December or January import data.

Trusted Sources: Reuters