'Can Raise Tariffs On Them Very Quickly': Donald Trump's Fresh Warning To India Over Russian Oil Trade

New Delhi: In a fresh warning, US President Donald Trump on Monday warned Washington could raise tariffs on Indian goods “very quickly" if New Delhi’s trade and energy decisions do not align with US expectations, stated reports.

Trump added, “We could raise tariffs on India if they don't help on Russian oil issue,” as per news agency Reuters.

Trump also mentioned Prime Minister Narendra Modi during the address, saying '…They wanted to make me happy, basically... PM Modi's a very good man. He's a good guy. He knew I was not happy.  It was important to make me happy. They do trade, and we can raise tariffs on them very quickly...", Trump was heard saying in an audio shared by the White House.

Trump's remarks on tariff hike comes amid ongoing trade negotiations between India and the US. The remarks also comes in backdrop of US' capture of Venezuelan leader Nicolas Maduro where oil was also a central factor in the latest strikes on the South American nation.

Trump, in his address, was referring to India’s continued oil trade with Russia and as a punishment for India’s heavy buying of Russian oil, the United States last year doubled import tariffs on Indian goods to 50 per cent, which led to a sharp deterioration of ties between New Delhi and Washington. 

Trump has been sharply critical of New Delhi’s ties with Moscow and has alleged India of strengthening Russia in the Ukraine war by purchasing Russian crude.

Months earlier, Trump claimed that Prime Minister Narendra Modi had assured him India would stop buying Russian oil, calling it a “big step” towards increasing pressure on Moscow. 

However, India, dismissing US President's claim, later clarified that no such conversation between Trump and Modi had taken place.

PM Modi-Trump Call

The tariff threat comes only weeks after Trump had a telephonic conversation with PM Modi, during which the two leaders emphasised the need to maintain momentum in their shared efforts to enhance bilateral trade despite ongoing tariff tensions. 

Their conversation took place the same day as negotiators from the two nations kickstarted a fresh round of talks aimed at resolving the tariff impasse. 

Modi and Trump have spoken three times since Trump doubled tariffs on imports from India to as much as 50%, hitting exports of textiles, chemicals and food items such as shrimp.

Modi described his conversation with Trump as "warm and engaging" and said their countries would continue to work together for global peace, stability and prosperity.

Trade negotiations collapsed

Trade negotiations between the two sides collapsed in late July, after India resisted opening its market for U.S. farm products and declined to acknowledge Trump's role in mediating during an India-Pakistan conflict. 

Talks have continued since then, amid signs Indian refiners are cutting Russian oil purchases after the U.S. imposed sanctions on Rosneft and Lukoil to pressure Moscow over the war in Ukraine.

Exports Dip

Indian exports to the U.S. fell nearly 9% year-on-year in October to $6.31 billion from $6.91 billion a year ago, though they were higher than $5.47 billion in September, Indian government data showed.

Washington is also pushing India to lower tariffs and non-tariff barriers on U.S. goods and open its market to American farm products, including soybean and grain sorghum.