Trump hints US could hold back secondary tariffs on India over Russian oil

US President Donald Trump said the US may not add extra tariffs on India for buying Russian oil, leaving room for change of plans after India faced 50 per cent tariffs

President Donald Trump has hinted that the US may not go ahead with additional secondary tariffs on countries that continue to buy Russian crude oil. This might come as a relief for India as there had been worries that the country could face new penalties if Washington enforced secondary sanctions.

 

"Well, he (Russian President Vladimir Putin) lost an oil client, so to speak, which is India, which was doing about 40 per cent of the oil. China, as you know, is doing a lot. And if I did what's called a secondary sanction, or a secondary tariff, it would be very devastating from their standpoint. If I have to do it, I'll do it. Maybe I won't have to do it," Trump said on Friday.   

 

 

Tariffs on India already in place

 

India is already facing steep tariffs from Washington. A 25 per cent duty on Indian imports took effect on August 7. Trump later announced an additional 25 per cent levy on Indian oil purchases from Russia, bringing the total tariff burden on Indian goods to 50 per cent. The second round of duties will start from August 27.

 

India calls decision 'unfair'

 

New Delhi strongly criticised the move. The Ministry of External Affairs said the tariff hike was “unfair, unjustified and unreasonable”, stressing that India’s energy imports are linked to national security. It also pointed out that European countries continue to import Russian oil at much higher levels. “Like any major economy, India will take all necessary measures to safeguard its national interests and economic security,” the ministry said.

 

Wider tariff hikes

 

The new US tariffs are not limited to India. The executive order, titled "Further Modifying the Reciprocal Tariff Rates", introduced fresh duties on nearly 70 countries. These range from 10 per cent to 40 per cent. Laos and Myanmar face 40 per cent, Pakistan 19 per cent, Sri Lanka 20 per cent, the UK 10 per cent, and Japan 15 per cent.

 

Most of the new duties came into force after midnight in New York on August 7. Trump celebrated the move on his Truth Social platform, writing: “It’s Midnight!!! Billions of Dollars In Tariffs Are Now Flowing Into The United States Of America [sic]!”

 

In another post, he added: “Reciprocal tariffs take effect at midnight tonight! Billions of dollars, largely from countries that have taken advantage of the United States for many years, laughing all the way, will start flowing into the USA. The only thing that can stop America’s greatness would be a radical left court that wants to see our country fail!”

 

Alaska summit ends without a breakthrough

 

The high-profile meeting between Trump and Putin ended without any deal to stop the Russia-Ukraine war.

 

“We had a very productive meeting, and there were many points that we agreed on. A couple of big ones that we haven't quite gotten there, but we made some headway. There's no deal until there's a deal,” Trump told reporters at a joint press conference.   

 

  Before the talks, US Treasury Secretary Scott Bessent had warned that if the discussions failed, Washington could raise secondary sanctions on India for purchasing Russian oil. “I think everyone has been frustrated with President Putin. We expected that he would come to the table in a more fulsome way. It looks like he may be ready to negotiate,” Bessent said in an interview with Bloomberg.

 

He added, “We put secondary tariffs on the Indians for buying Russian oil. And I could see, if things don't go well, then sanctions or secondary tariffs could go up. Sanctions can go up, they can be loosened. They can have a definitive life. They can go on indefinitely.”

 

(With agency inputs)