US May Postpone Additional Tariffs on India, Trump Suggests Amid Russia Ties

New Delhi (The Uttam Hindu): The Donald Trump administration is believed to be postponing its decision to impose an additional 25 per cent tariff on India for buying oil from Russia after the US President said that Russia has already lost a major oil customer (India).

Speaking to Fox News on Air Force One while on his way to a meeting with Russian President Vladimir Putin in Alaska, Trump said that the US cannot impose additional tariffs on countries that continue to buy crude oil from Russia. "He (Vladimir Putin) has lost a major customer, which is India, which is buying about 40 percent of Russian oil. At the same time, China is doing the same. If I impose additional tariffs, it will be devastating for them. If I think it is necessary, I will do it. I may not have to do it," Trump said.

The US has announced to impose an additional 25 per cent tariff on India from August 27. Earlier this week, US Treasury Secretary Scott Bessant said that if "things do not go well" between Trump and Putin at the Alaska summit, India could face additional tariffs for buying Russian oil. The Indian government has already said that the US tariffs targeting them are unfair and unreasonable. The government said, "Like any major economy, India will take all necessary steps to protect its national interests and economic security." Additionally, since the beginning of this year, India has sharply increased its purchase of oil and gas from the US. As a result, India's trade surplus with the US has reduced, which is a major goal of the Trump administration's trade policy.

Official data show that India's oil and gas imports from the US have jumped 51 per cent from January to June this year. The country's LNG imports from the US are expected to nearly double to $2.46 billion in the financial year 2024-25 from $1.41 billion in 2023-24. Prime Minister Narendra Modi had assured in February that India will increase energy imports from the US to $25 billion in 2025 from $15 billion in 2024 to help reduce the US trade deficit. Following this, state-owned Indian oil and gas companies began talks for more long-term energy purchases from US companies. New Delhi has also made it clear that it is diversifying its energy import sources to reduce dependence on Russian oil. According to the government, India and the US have a very important strategic relationship that goes far beyond trade.