Post by : Saif Rahman

The U.S. has reiterated its discontent regarding India's ongoing transactions involving Russian oil. President Donald Trump, while aboard Air Force One on Sunday, issued a warning that higher tariffs could be imposed on Indian goods if New Delhi continues to depend on Russian crude oil.

Trump remarked, “Modi is a good guy. He understands that keeping me content is vital.” He went on to say, “They engage in trade, and we can quickly elevate tariffs against them.” This alert follows last year's decision to double the import tariffs on Indian products to 50% as retribution for India's significant consumption of Russian oil.

Despite the steep tariffs, India's exports to the U.S. saw a rise in November, showcasing resilience in the commercial ties between the two nations. Indian officials have expressed a firm position, showing minimal leeway regarding U.S. requests, particularly concerning agricultural imports. Concurrently, data indicates that India has been scaling back its intake of Russian oil.

To keep a closer eye on trade, India has requested its refiners to submit weekly import reports on oil from both the U.S. and Russia. Officials expect that purchases of Russian crude may dip below one million barrels per day, partly to pave the way for a potential agreement with the United States.

Negotiations are ongoing, yet a conclusive resolution remains elusive. Prime Minister Modi and President Trump have had at least three telephone conversations since the introduction of tariffs, but discussions have yet to yield results. Last month, India’s Commerce Secretary, Rajesh Agrawal, met with U.S. Deputy Trade Representative Rick Switzer in Delhi to deliberate on trade and economic collaboration.

This scenario underscores the escalating tensions between India and the U.S. concerning both energy policy and trade. Although both nations share important global relationships, the disputes over Russian oil transactions present new hurdles. Markets, businesses, and policymakers are now closely monitoring these developments to see if a compromise will be reached or if tariff increases will follow.

As India navigates its energy requirements alongside diplomatic and trade challenges, the outcome of these discussions will impact not only bilateral relations but also the broader global energy landscape.

#Global News #Global Updates #World News