India-US Tariff War / Trump threatens India, talks of imposing more tariffs on selling Russian oil

India-US Tariff War: US President Donald Trump has once again targeted India and issued a strong warning. Trump has claimed that India is making huge profits by selling Russian oil in the open market, thereby providing economic assistance to Russia in its ongoing UDCRD with Ukraine. He accused India of ignoring the human loss in Ukraine and said that India "does not care" about how many people are being killed due to the Russian war machine. Trump warned that more tariffs could be imposed on India because of this. Recently, the US had announced 25% tariffs and penalties on India, and now Trump has indicated that it could be increased further.

Continuous attack on India

Trump's statement is the latest in a series of his recent criticisms against India. Last week too, he slammed India for joining the BRICS group and maintaining close ties with Russia. Trump had said that the BRICS countries were trying to salvage their "dead economies". The statement is a surprising departure from the US policy that saw India as a strategic partner against China in Asia. Now, it appears Trump is willing to redefine ties with India to put pressure on Russian President Vladimir Putin, who is opposed to US efforts to end the Ukraine war.

Challenges in trade talks

Despite the growing tensions between India and the US, New Delhi has expressed a willingness to continue trade talks with Washington. However, analysts believe India, the world's fastest-growing major economy, will not be willing to make too many concessions. Trinh Nguyen, senior economist at Natixis, cited the recent India-UK trade deal to say India has shown no interest in opening up sensitive sectors such as agriculture and dairy, which are high on the US priority list. "India's policy risk appetite has increased, but it will move at its own pace," Nguyen wrote.

India's position

India has clarified its position on Russian oil purchases, stating that it prefers to buy cheap oil to maintain stability in global energy markets. India's stance reflects its energy security interests and strategy to maintain global geopolitical balance. However, Trump's recent statements have raised new challenges in trade and diplomatic relations between the two countries.