AsianFin -- U.S. President Donald Trump on Monday floated a “fair” trade deal with India to lower the hefty tariffs over purchases of Russian oil.
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Trump predicted he would “at some point” cut the tariff rate on Indian goods, stating the U.S. was getting “pretty close” to a trade deal with New Delhi.
“Right now they don’t love me, but they’ll love us again,” the president said. “We’re getting a fair deal.” He later Monday said the U.S. and India were “pretty close to doing a deal that’s good for everybody.”
Trump said he would be “bringing down” the tariffs, when asked about the ongoing trade negotiations with India. Trump said that India faces such high tariffs because of its oil trade with Russia, and yet again claimed that New Delhi has “stopped” the purchase.
Trump on August 6 signed an executive order imposing an additional 25% tariff on imports from India over Russian oil purchase. The new tariffs entered into effect 21 days after announcement of the order, which effectively raised tariffs imposed by the U.S. on Indian goods to 50% in August. India accordingly became one of the countries facing the highest U.S. tariffs that month.
Two months later, Trump said Indian Prime Minister Narendra Modi told him the Indian government will halt purchases of sanctioned Russian oil. Trump acknowledged India can not stop oil shipments immediately. He said the halt will be “a little bit of a process, but the process is going to be over with soon.” He didn’t provide an exact timetable, while seeing India’s oil purchase will restart once Moscow’s war in Ukraine ends.
“If India doesn’t buy [Russian] oil, it makes [ending the war] much easier,” Trump said on on October 15. “They assured me within a short period of time, they will not be buying oil from Russia, and they will go back to Russia after the war is over.”
India's foreign ministry said a day ago that it is unaware of any conversation between the two heads of state around New Delhi reducing its Russian oil buys and stepping up its purchase of US crude oil and natural gas.
“To the best of our knowledge, I am not aware of any conversation between PM Modi and President Trump yesterday,” Randhir Jaiswal, a spokesman for the Ministry of External Affairs, told reporters at a briefing in New Delhi on October 16. In a statement earlier that day, Jaiswal didn’t confirm that India is complying with Trump’s demands, although said that New Delhi is working to deepen energy ties with the US.
Trump on October 19 promised to maintain “massive” tariffs on imports from India until it stops purchase of Russian oil. "I spoke with Prime Minister Modi of India, and he said he's not going to be doing the Russian oil thing," Trump told reporters on board Air Force One.
"If they want to say that, then they'll just continue to pay massive tariffs, and they don't want to do that," Trump replied when asked about New Delhi’s denying the telephone conversation took place.
Trump on October 21 reiterated a phone call with Modi, stating the prime minister assured him that the Indian government would reduce buying Russian oil. “He’s not going to buy much oil from Russia. He wants to see that war end as much as I do. He wants to see the war end with Russia, Ukraine, and as you know, they’re not going to be buying too much oil,” Trump said aboard Air Force One. He repeated his threat of “massive” tariffs if India didn’t do so.
Modi in a post on X on October 22 confirmed a phone call with Trump. He said he hoped the two countries continue to “stand united against terrorism in all its forms,” without mentioning India’s stance on Russian oil.
