Trump vows substantial India tariff hike over Russian oil buying
'India is not only buying massive amounts of Russian Oil, they are then, for much of the Oil purchased, selling it on the Open Market for big profits,' Trump wrote on social media on Monday. 'They don't care how many people in Ukraine are being killed by the Russian War Machine. Because of this, I will be substantially raising the Tariff paid by India to the USA.'
Trump didn't say by how much he would increase the levy. Last week, he announced a 25% rate on Indian exports — one of the highest of any major economy — and vowed more duties if India continued to buy oil from Russia.
The US president's warning comes ahead of an Aug 8 deadline for Russia to reach a truce with Ukraine, with the administration threatening so-called secondary sanctions on countries that purchase Russian energy. Ukraine's allies view those purchases as helping to prop up Russian leader Vladimir Putin's economy and undercutting pressure on Moscow to end a war that is now in its fourth year.
India has been a top Trump target in the campaign to end the war. Prime Minister Narendra Modi — who previously enjoyed warm relations with Trump — has been defiant, urging Indians to buy local goods and signalling that his country will continue to buy Russian oil.
In a social media post later on Monday, India's Ministry of External Affairs hit out at the European Union and the US for continuing to buy energy and other materials from Russia when 'such trade is not even a national compulsion.' It noted that India began buying oil from Russia because traditional supplies were diverted to Europe after the start of the war, and the US 'encouraged such imports.'
'The targeting of India is unjustified and unreasonable,' the ministry said. 'Like any major economy, India will take all necessary measures to safeguard its national interests and economic security.'
India has morphed into a major buyer of Moscow's crude since the 2022 invasion of Ukraine, spurred on by discounts. On average, the country has been buying Russian crude at a rate of about 1.7 million barrels a day so far this year, according to tanker tracking data compiled by Bloomberg.
India exported about 1.4 million barrels a day of refined fuels in the first half of this year, according to Kpler data compiled by Bloomberg. Diesel or gasoil cargoes made up approximately 40% of total fuel exports, while gasoline and blending components comprised about 30% of the shipments.
Still, it's hard to quantify how much of India's oil exports derive specifically from Russian crude because refiners generally consume an array of barrels and then sell an even wider range of fuels. The EU recently launched a package of sanctions that will ban the purchase of fuel made from Russian crude, but traders are still waiting for the body to detail how the measures would work in practice.
At least four tankers discharged millions of barrels of Russian crude at Indian refineries at the weekend, a sign the closely scrutinised deliveries are continuing as normal.
Any disruption to Indian purchases of Russian oil could force it to look elsewhere for supplies. Last week, the country's largest processor bought several million barrels of crude from the US and United Arab Emirates in sudden large purchases that were set to be delivered relatively quickly, people familiar with the matter said.
Under the president's deadline for Putin to halt the fighting in Ukraine, secondary sanctions targeting buyers of Russian oil could be imposed Friday.
'Secondary sanctions and tariffs against those that are paying for this war — like China, India and Brazil — by buying the oil that Russia is producing, is an obvious next step to try and bring this war to an end,' Matt Whitaker, the US ambassador to NATO, told Bloomberg Television. 'This is really going to hit them where it counts, and that is in their main revenue source, which is the sale of oil to these countries.'
Trade talks
Trump's escalating tariffs stunned India after months of negotiations. The president has intensified his rhetoric against India, assailing its levies and other barriers to US goods. He's also hit out at the nation's energy purchases from Russia and participation in the Brics group of developing economies, in particular over the bloc's consideration of alternatives to the US dollar.
The Indian government has indicated it intends to continue talks with the US in hopes of securing lower tariffs. India is considering ramping up natural gas purchases from the US and increasing imports of communication equipment and gold.
Officials see those moves as helping to narrow India's trade surplus with the US, a key concern for Trump. The US had a trade deficit with India of about $43 billion last year, the 11th largest, according to figures from the International Monetary Fund. But there are numerous sticking points, with Modi reluctant to open up sensitive sectors like agriculture and dairy to the US.
Relations between Modi and Trump have deteriorated in the president's second term. After clashes earlier this year between India and Pakistan, Trump threatened to block access to US markets if the countries did not halt the fighting. Trump has claimed his actions brought peace, a view that has rankled Modi's government.
Pressure on Russia
India has been caught in the middle of Trump's enhanced focus on ending Russia's war in Ukraine. The president vowed to quickly end Russia's invasion but those efforts have been stymied by Putin, who has responded with only maximalist demands for Ukrainian territory and refused face-to-face discussions with Ukrainian President Volodymyr Zelenskiy.
Trump has grown increasingly frustrated with Putin, leading to his latest threats to impose economic penalties on Moscow. He has floated tougher sanctions in the past only to delay action in hopes of preserving negotiations.
Trump told reporters Sunday that special envoy Steve Witkoff would go to Russia this week — on Wednesday or Thursday — for further discussions. Tensions between Washington and Moscow intensified last week when Trump said he had moved two nuclear submarines in response to 'highly provocative statements' from former Russian President Dmitry Medvedev.
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Bangkok Post
6 hours ago
- Bangkok Post
Trump vows substantial India tariff hike over Russian oil buying
US President Donald Trump said he would be 'substantially raising' the tariff on Indian exports to the United States over the Asian nation's purchases of Russian oil, a move New Delhi slammed as unjustified in an escalating fight between the two major economies. 'India is not only buying massive amounts of Russian Oil, they are then, for much of the Oil purchased, selling it on the Open Market for big profits,' Trump wrote on social media on Monday. 'They don't care how many people in Ukraine are being killed by the Russian War Machine. Because of this, I will be substantially raising the Tariff paid by India to the USA.' Trump didn't say by how much he would increase the levy. Last week, he announced a 25% rate on Indian exports — one of the highest of any major economy — and vowed more duties if India continued to buy oil from Russia. The US president's warning comes ahead of an Aug 8 deadline for Russia to reach a truce with Ukraine, with the administration threatening so-called secondary sanctions on countries that purchase Russian energy. Ukraine's allies view those purchases as helping to prop up Russian leader Vladimir Putin's economy and undercutting pressure on Moscow to end a war that is now in its fourth year. India has been a top Trump target in the campaign to end the war. Prime Minister Narendra Modi — who previously enjoyed warm relations with Trump — has been defiant, urging Indians to buy local goods and signalling that his country will continue to buy Russian oil. In a social media post later on Monday, India's Ministry of External Affairs hit out at the European Union and the US for continuing to buy energy and other materials from Russia when 'such trade is not even a national compulsion.' It noted that India began buying oil from Russia because traditional supplies were diverted to Europe after the start of the war, and the US 'encouraged such imports.' 'The targeting of India is unjustified and unreasonable,' the ministry said. 'Like any major economy, India will take all necessary measures to safeguard its national interests and economic security.' India has morphed into a major buyer of Moscow's crude since the 2022 invasion of Ukraine, spurred on by discounts. On average, the country has been buying Russian crude at a rate of about 1.7 million barrels a day so far this year, according to tanker tracking data compiled by Bloomberg. India exported about 1.4 million barrels a day of refined fuels in the first half of this year, according to Kpler data compiled by Bloomberg. Diesel or gasoil cargoes made up approximately 40% of total fuel exports, while gasoline and blending components comprised about 30% of the shipments. Still, it's hard to quantify how much of India's oil exports derive specifically from Russian crude because refiners generally consume an array of barrels and then sell an even wider range of fuels. The EU recently launched a package of sanctions that will ban the purchase of fuel made from Russian crude, but traders are still waiting for the body to detail how the measures would work in practice. At least four tankers discharged millions of barrels of Russian crude at Indian refineries at the weekend, a sign the closely scrutinised deliveries are continuing as normal. Any disruption to Indian purchases of Russian oil could force it to look elsewhere for supplies. Last week, the country's largest processor bought several million barrels of crude from the US and United Arab Emirates in sudden large purchases that were set to be delivered relatively quickly, people familiar with the matter said. Under the president's deadline for Putin to halt the fighting in Ukraine, secondary sanctions targeting buyers of Russian oil could be imposed Friday. 'Secondary sanctions and tariffs against those that are paying for this war — like China, India and Brazil — by buying the oil that Russia is producing, is an obvious next step to try and bring this war to an end,' Matt Whitaker, the US ambassador to NATO, told Bloomberg Television. 'This is really going to hit them where it counts, and that is in their main revenue source, which is the sale of oil to these countries.' Trade talks Trump's escalating tariffs stunned India after months of negotiations. The president has intensified his rhetoric against India, assailing its levies and other barriers to US goods. He's also hit out at the nation's energy purchases from Russia and participation in the Brics group of developing economies, in particular over the bloc's consideration of alternatives to the US dollar. The Indian government has indicated it intends to continue talks with the US in hopes of securing lower tariffs. India is considering ramping up natural gas purchases from the US and increasing imports of communication equipment and gold. Officials see those moves as helping to narrow India's trade surplus with the US, a key concern for Trump. The US had a trade deficit with India of about $43 billion last year, the 11th largest, according to figures from the International Monetary Fund. But there are numerous sticking points, with Modi reluctant to open up sensitive sectors like agriculture and dairy to the US. Relations between Modi and Trump have deteriorated in the president's second term. After clashes earlier this year between India and Pakistan, Trump threatened to block access to US markets if the countries did not halt the fighting. Trump has claimed his actions brought peace, a view that has rankled Modi's government. Pressure on Russia India has been caught in the middle of Trump's enhanced focus on ending Russia's war in Ukraine. The president vowed to quickly end Russia's invasion but those efforts have been stymied by Putin, who has responded with only maximalist demands for Ukrainian territory and refused face-to-face discussions with Ukrainian President Volodymyr Zelenskiy. Trump has grown increasingly frustrated with Putin, leading to his latest threats to impose economic penalties on Moscow. He has floated tougher sanctions in the past only to delay action in hopes of preserving negotiations. Trump told reporters Sunday that special envoy Steve Witkoff would go to Russia this week — on Wednesday or Thursday — for further discussions. Tensions between Washington and Moscow intensified last week when Trump said he had moved two nuclear submarines in response to 'highly provocative statements' from former Russian President Dmitry Medvedev.
Bangkok Post
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Bangkok Post
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He attended only the 5th Asean-US Summit in November 2017 and left the East Asia Summit halfway through. This time, however, he appears to be rewarding Mr Anwar for brokering the Thai-Cambodian ceasefire deal. At a recent press conference, Mr Anwar publicly credited Mr Trump for the initiative. Cambodian Prime Minister Hun Manet and Thailand's acting Prime Minister Phumtham Wechayachai also expressed their gratitude. Asean leaders have since showered Mr Trump with praise, augmenting his ego. After all, "gaining face" is part of Asean's cultural DNA. Mr Trump's decision to attend is an acknowledgement of Asean as a pivotal regional group despite his preference for transactional engagement. The summit is expected to draw numerous heads of state. There would be one-on-one sideline meetings. Russian President Vladimir Putin, who shares decades of personal rapport with Mr Anwar, has been invited to attend the Asean summit. The Malaysian chair also plans to invite other influential guests to Kuala Lumpur. In his second term, having spent considerable time focused on Middle East diplomacy, Mr Trump may finally discover that Asean leaders are more cooperative and more pleasant to deal with. The Thai-Cambodian truce only materialised because of the region's diplomatic resilience, led by a Muslim leader mediating between two Buddhist-majority countries. For Mr Trump, this is a rare political opportunity that could bolster his resume for a Nobel Peace Prize nomination. To leave his mark on Asean, however, Mr Trump must surpass the record of his predecessor and political rival, President Barack Obama, who during his two terms (2008–2016) became one of the region's most popular Western leaders. Mr Obama attended seven Asean summits. Most memorably, during the 37th Asean Summit in Kuala Lumpur in 2015, he personally invited all Asean leaders to a special and stand-alone US-Asean summit at Sunnylands, California, in February 2016. That event was pulled together in just three months, which was amazingly fast by diplomatic standards. It also marked the first time that the US formally recognised Asean centrality in its official documents. Mr Trump could eclipse Mr Obama's Asean legacy through three straightforward steps. First of all, he could serve as the leading guarantor of peace and stability in the region. Branding himself the "President of Peace", Mr Trump could build on the Thai-Cambodian truce and offer his hand in other regional flashpoints. But it must be an Asean-led process. Secondly, he should revive the special US-Asean summit he had planned in Las Vegas during his first term but had to cancel due to Covid-19. 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And yes, lowering US tariffs -- still a steep 19% for Malaysia, Thailand, Cambodia, and the Philippines -- before arriving would not hurt either. With five months remaining in his Asean chairmanship, Mr Anwar must act swiftly to consolidate the bloc's credibility in crisis management. Top priority would be to make tangible progress on the four-and-a-half-year Myanmar quagmire. With renewed moral authority, Asean under Mr Anwar can engage more effectively with all Myanmar stakeholders to push for substantive progress for the Asean Five-Point Consensus. Myanmar's junta has announced plans to hold elections between late December and early January as part of its exit strategy. However, the international community has widely condemned the move as a facade to legitimise military rule. At the upcoming summit, the Asean chair can press for a more inclusive process, urging the junta to broaden participation. At the same time, dialogue among all parties must begin, though they remain deeply out of sync. Nay Pyi Taw, for its part, believes it can still hold the elections, which will reportedly cover 267 of Myanmar's 330 townships, roughly 80% of the country. It will rely on locally manufactured electronic voting machines. Resistance forces, however, reject the elections and still remain active in rural battlefields. Here, the Asean chair can enlist major powers -- particularly the US, China, India, and Russia -- to help push all parties toward dialogue and an eventual ceasefire. These dialogue partners and Asean will be essential in guaranteeing Myanmar's stability in the future. The recent ceasefire agreement between Myanmar and armed ethic groups was no mere optics as it was a carefully calibrated diplomatic moment. It helps demonstrate that Asean is not just a talk shop. Given the current fractured geopolitical landscape, the October summit is shaping up to be one of the most consequential in Asean history. The chair must use the opportunity presented by Mr Trump's presence and other global leaders to secure firm commitments that will reinforce Asean's strategic autonomy for years to come.
