Trump Threatens to Increase Tariffs on India, Here’s Why!

US President Donald Trump continues to issue threats to India of increasing the tariffs further, even after doubling the tariffs to 50 per cent by imposing an additional 25 per cent to the existing 25 for New Delhi purchasing Russian oil.

US Treasury Secretary Scott Bessent issued a warning that Washington could increase the secondary tariffs on India if things don’t go well between President Donald Trump and Russian President Vladimir Putin, during their meeting scheduled on Friday.

In a bid to end the war with Ukraine, Trump and Putin will hold talks in Alaska on August 15. Russia has been invading the neighbouring country since February 2022.

Initially, US imposed 25 per cent tariff on Indian goods and on August 7, Trump slapped an additional 25 per cent tariff on the country for purchasing oil from Russia, which he said was fueling the war machine. With the additional tariff, the total levy rate climbed to 50 per cent.

Trump said that he is not going to be happy if India continues to buy Russian crude.

At the same time, Trump also warned Russia of very severe consequences if it does not stop the ongoing war in Ukraine. He even told reporters that Russia will face severe action if it does not agree to halt the war after his meeting with Putin this weekend.

“President Trump is meeting with President Putin, and the Europeans are in the wings, carping about how he should do it, what he should do. The Europeans need to join in these sanctions,” Bessent told the mediapersons. The President is creating his own leverage and the US needs the Europeans to come in and help create more leverage, he said.

It is worth mentioning that earlier this week, Prime Minister Narendra Modi spoke to Ukrainian President Volodymyr Zelenskyy and India conveyed its consistent position on the need for an early and peaceful resolution to the conflict.

The Indian External Affairs ministry termed Trump’s doubled tariffs as “unfair, unjustified and unreasonable” but made it clear that the country would not compromise on the interests of its farmers.

India also pointed out that the countries criticizing New Delhi for its Russian oil purchase are themselves involved in trade with Russia.