The problem concerning high US tariffs on exported Indian goods is once again in the limelight following a series of comments from US President Donald Trump on India-US trade relations, the acquisition of Russian oil, and his personal relations with Indian Prime Minister Narendra Modi.
Addressing the 'House GOP Member Retreat' in Washington DC on Tuesday, Trump acknowledged that while his ties with the Indian leader are good, the recent trade actions taken by the US have left New Delhi feeling “not that happy” with him due to the “tariffs” that India had been “paying a lot” for.
“I have a very good relationship with him (PM Modi). He’s not that happy with me because they’re paying a lot of tariffs now. But now they have reduced it very substantially, buying oil from Russia,” Trump stated.
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Tariffs linked to Russian oil purchases
The US has also applied tariffs of up to 50% on Indian goods, citing the latter’s continued importation of Russian oil into India, indirectly an economically supportive role for Russia in the Ukraine crisis. Trump has continuously linked the tariffs with energy relationships with Russia, stating that tariffs can continue rising if his concerns are not addressed.
In previous press interviews on Air Force One, Trump stated that he can increase tariffs very quickly if an adjustment from India's trade practices is not realised. He said, referring to his relations with Modi: “Modi is a very good guy, and he knew I was not happy. And it was important to make me happy. They do trade, and we could raise tariffs on them very quickly.”
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Apache Helicopters and Trade Talks
Trump spoke about discussions with Modi regarding the postponement of the delivery of Apache helicopters to India. While reminiscing about the conversation, Trump said, “Prime Minister Modi came to see me - ‘Sir, may I see you please?’ Yes.”He also said that India had placed an order for 68 Apaches and that the issue was being sorted out. “We're changing it. We're changing it. India ordered 68 Apaches,” Trump said.
Push for tougher measures
US Senator Lindsey Graham, who has been actively promoting tougher policy towards nations importing Russian oil, said, “I was at the Indian Ambassador’s house about a month ago and all he wanted to talk about is how they’re buying less Russian oil. Would you tell the president to relieve the tariff?”, Hindustan Times reported Graham as saying while referring to what he described as his private conversations with Indian Ambassador to the US, Vinay Kwatra.
Graham urged a penalty of as much as 500% against those countries, claiming a continued supply of oil from Russia helps fund its wars.
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“If you are buying cheap Russian oil, you keep Putin's war machine going," he said, adding further that “we are trying to give the President the ability to make that a hard choice by tariffs.
Defending the tariff framework, Trump said the measures were strengthening the US financially, adding, “We are getting rich because of the tariffs. I hope everyone understands that.”
According to official figures, the imports of oil from Russia have increased to $3.72 billion in November but fell in December, as revealed by analytics firm Kpler. Secondly, the acquisition of oil from the US increased to $1.44 billion in November. Notably, India has previously agreed to increase the energy import from the US from $15 billion to $25 billion, including a one-year contract for 2.2 million tonnes of LPG, signed by Indian public sector oil companies.
