New Delhi: In what could spell further trouble for India, US President Donald Trump has threatened to impose more tariffs on India if it "does not help on the Russian oil issue", even as he warmly praised Prime Minister Narendra Modi. This comes amid continued strained ties between the two strategic partners especially after the United States imposed steep 50 per cent tariffs on India in August last year, half of which is a penalty for importing Russian oil. Both nations are currently engaged in negotiations for a bilateral trade agreement even as President Trump has been claiming that India has cut back oil imports from Russia. Washington has also sanctioned Russian oil companies. The latest remarks by President Trump is also being seen as a pressure tactic on the trade front as India has refused to open crucial sectors of its economy, including dairy and agriculture, to American goods which is what the US has been pushing for.
"We could raise tariffs on India if they don't help on the Russian oil issue," Trump was quoted by media reports as stating while addressing reporters on board Air Force One on Monday (IST). "They (India) wanted to make me happy, basically... PM Modi's a very good man. He's a good guy. He knew I was not happy. It was important to make me happy. They do trade, and we can raise tariffs on them very quickly."
According to reports, Republican Senator Lindsey Graham --who was standing alongside President Trump -- claimed that India's ambassador to the US Vinay Mohan Kwatra had last month requested him to tell the US President to remove the 25 per cent additional tariff on India levied for importing Russian oil on the grounds that India is now buying less Russian oil. "I was at the Indian ambassador's house a month ago, and all he wanted to talk about was how India is buying less Russian oil. And he asked me to tell the President to relieve the 25 per cent tariff." Senator Graham is reportedly at the forefront of bringing legislation in the US Congress that may seek to penalise Russia as well as countries like India and China that buy Russian oil. "So, I'm hoping we'll bring the [tariff] bill up and it's from 0 to 500. He [Trump] picks the number [tariff rate]. Nobody else does. But if you're buying cheap Russian oil, keeping Valdimir Putin's war machine going, we're trying to give the President the ability [through the bill] to make that a hard choice by tariffs," Senator Graham was further quoted as saying. The Republican Senator also said that he believes that what President Trump "did with India is the chief reason India is now buying substantially less Russian oil".
Just last month, Modi and President Trump "had a very warm and engaging conversation", during which they had "reviewed the progress in bilateral relations and discussed regional and international developments" while affirming that "India and the US will continue to work together for global peace, stability and prosperity".
Last month, Russian President Vladimir Putin had also visited India in a high-profile visit which was watched closely by Washington and several other Western capitals. In December, the US President had also threatened to impose fresh tariffs on Indian rice exports to the US.
In the past nearly eight months, the US President has repeatedly claimed credit for brokering a ceasefire between India and Pakistan in May last year after the four-day military conflict between the two neighbours, even as New Delhi had refuted this at the highest levels. This has also been a major irritant between the two nations.
