US President Donald Trump’s threat to impose steep secondary tariffs on countries trading with Russia has raised alarm in India over the future of its discounted oil purchases from Moscow, with analysts warning the issue could complicate negotiations on a bilateral trade deal with Washington.
Trump vowed on Monday to impose “very severe tariffs” if Russia did not end its war in Ukraine within 50 days. Washington would target Moscow’s remaining trade partners with measures aimed at choking off support for the Kremlin’s war machine, he added.
Soon after starting his second term in January, Trump launched a bid at rapprochement with Russian President Vladimir Putin as he sought to honour his promise made during last year’s US presidential election campaign to end the Ukraine war within 24 hours. But he has shown growing frustration over the impasse, with Putin stepping up attacks instead of halting the war.
Trump’s latest comments came shortly after Republican Senator Lindsey Graham and Democratic Senator Richard Blumenthal pushed for swift action against Moscow, including legislation that would allow the president to slap a 500 per cent tariff on imports from countries buying Russian uranium, gas and oil.
The bill, which is gaining traction in the Senate, reflects the growing bipartisan appetite to squeeze Russia’s wartime economy. But it also presents a potential dilemma for India and China – two of the largest importers of Russian oil.
“Tariffs of this size would significantly impair India’s capacity to maintain this trade flow and could lead to increased inflation,” said Priya Walia, vice-president of commodity markets for oil at Rystad Energy.
