The United States could raise tariffs on India if New Delhi does not meet Washington's demand to curb purchases of Russian oil, President Donald Trump said on Sunday, escalating pressure on the South Asian country as trade talks remain inconclusive, APA reports, citing Reuters.
"(Prime Minister Narendra) Modi is a good guy. He knew I was not happy, and it was important to make me happy," Trump told reporters aboard Air Force One.
"They do trade, and we can raise tariffs on them very quickly," Trump said in response to a question on India's Russian oil purchases.
India's commerce ministry did not immediately respond to a request for comment.
Trump's comments follow months of trade negotiations after the U.S. doubled import tariffs on Indian goods to 50% last year as punishment for its heavy buying of Russian oil.
Indian markets reacted on Monday, with the information technology stock index (.NIFTYIT), falling about 2.5% to its lowest in more than a month, as investors worried that strained trade relations could further delay a U.S.-India trade deal.
Republican Senator Lindsey Graham, a close Trump ally travelling with him, said U.S. sanctions on Russian oil companies and higher tariffs on India had helped curb Indian oil imports.
Graham is backing legislation to impose tariffs of up to 500% on countries such as India that continue to buy Russian oil.
"If you are buying cheap Russian oil, (you) keep Putin's war machine going," he said, adding that "we are trying to give the President ability to make that a hard choice by tariffs."
Trump's actions were the main reasons India was now buying "substantially less Russian oil," Graham said.
Trade experts warn, however, that New Delhi’s cautious approach risks weakening its position.
Ajay Srivastava, founder of trade think tank Global Trade Research Initiative, said Indian exports already face a 50% U.S. tariff, with 25% linked to purchases of Russian crude.
While Indian refiners have cut imports after sanctions, he said, buying has not stopped entirely, leaving India in a "strategic grey zone."
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