Trump threatens 50% tariffs on India for buying Russian oil

President Donald Trump published an executive decree reaching India with an additional 25% rate on his Russian oil purchases.

This will increase the total price on Indian imports to the United States at 50%-among the highest rates imposed by the United States.

The new rate will come into force in 21 days, therefore on August 27, according to the decree.

On Wednesday, a response from the Indian Ministry of Foreign Affairs said that Delhi had already clearly indicated his position on imports from Russia and reiterated that the price was “unjust, unjustified and unreasonable”.

“It is therefore extremely regrettable that the United States chooses to impose additional prices on India for actions that several other countries also take in their own national interest,” said the brief press release.

“India will take all necessary measures to protect its national interests,” he added.

The American president had previously warned that he would increase the samples, saying that India does not care about the number of people in Ukraine killed by the Russian war machine “.

On Wednesday, the White House said in a statement that “the actions of the Russian Federation in Ukraine constituted a continuous threat to American national security and foreign policy, requiring stronger measures to combat national urgency”.

He said Russian oil imports undergo American efforts to counter Russia’s activities in Ukraine.

He added that the United States will determine which other countries import from Russia oil and “recommend other actions to the president if necessary”.

Oil and gas are the largest exports in Russia, and the largest Moscow customers include China, India and Turkey.

The threatened tariff hike follows the meetings on Wednesday by Trump’s best envoy, Steve Witkoff in Moscow, aimed at ensuring peace between Russia and Ukraine.

Delhi had previously described Trump’s threat to raise prices on his “unjustified and unreasonable” oil purchase.

In a previous statement, a spokesperson for the Indian Ministry of Foreign Affairs, Randir Jaiswal, said the United States had encouraged India to import Russian gas at the start of the conflict, “to strengthen the stability of global energy markets”.

He said India “began to import Russia because traditional supplies have been diverted to Europe after the conflict was triggered”.

The last threatened price shows Trump’s desire to impose sanctions related to the war in Ukraine, even against nations, which the United States considers important allies or business partners.

This could be a warning that other countries could feel a real bite if Trump accelerates this kind of sanctions once the deadline on Friday, when the American president threatened new sanctions against Russia and to place 100% tariffs on countries that buy his oil.

It would not be the first time that the Trump administration has required secondary prices, which are also in place to punish Venezuelan oil buyers.

India previously criticized the United States-its largest trading partner-for having introduced the samples, when the United States itself is still trade with Russia.

Last year, the United States exchanged goods of an estimated value of $ 3.5 billion (2.6 billion pounds sterling) with Russia, despite sanctions and difficult rates.

Trump and Indian Prime Minister Narendra Modi have qualified for friends in the past and during Trump’s first mandate, attended political rallies in countries with each other.

But that did not prevent Trump from hitting India with samples, suggesting divergent interests between New Delhi and Washington.

Prices are expected to make Indian products much more expensive in the United States and could reduce exports linked to the United States by 40 to 50%, according to the Global Trade Research Initiative (GTRI), a Delhi-based reflection group.

“India should remain calm, avoid reprisals for at least six months and recognize that significant commercial negotiations with the United States cannot proceed under threats or distrust,” said former Indian trade official and GTRI chief Ajay Srivastava.

With an additional analysis of the BBC North America Anthony Zurcher correspondent and the BBC India Soutik Biswas correspondent.