India very close to China in purchasing Russian oil, you are going to see more sanctions: Trump
New York/Washington (PTI): US President Donald Trump has said India is "very close" to China in terms of its purchases of Russian oil and will pay tariffs of 50 per cent as he indicated that "you are going to see so much secondary sanctions".
".... As you know, we put a 50-per cent tariff on India on oil. They are the second largest, they are very close to China in terms of the purchase of oil from Russia," Trump said in the Oval Office on Wednesday.
Trump signed an executive order "Addressing Threats to the US by the Government of the Russian Federation" early on Wednesday, slapping an additional 25-per cent tariff on India for New Delhi's purchases of oil from Russia. This took the total levies imposed on India to 50 per cent, among the highest that Washington has imposed on any country, after the Trump administration had announced 25-per cent tariffs on India last week that come into effect from August 7. The additional 25-per cent duty will come into effect after 21 days or August 27.
At the White House event, Trump was flanked by Apple CEO Tim Cook, Vice President J D Vance, Secretary of the Treasury Scott Besant and Secretary of Commerce Howard Lutnick as the technology giant announced that it will invest USD 600 billion in the United States over the next four years. Trump was asked several questions about his decision to impose an additional tariff on India.
To a question that if he reaches a deal with Ukraine and Russia, would he drop the additional tariffs on India, Trump said, "We will determine that later but right now, they are paying a 50-per cent tariff."
Trump was then told that Indian officials have said there are other countries like China that are buying Russian oil, to which he said, "It is okay." On why was he singling India out for these additional tariffs, the US president said "it has only been eight hours, so let us see what happens over the next.... You are going to see a lot more. You are going to see so much secondary sanctions."
The United States has imposed this additional tariff or penalty for Russian imports only on India, while other buyers, such as China and Turkiye, have so far escaped such measures. The 30-per cent tariff on China and 15 per cent on Turkiye is lower than India's 50 per cent.
Asked about the additional penalties on India and whether he has any similar plans to enact more tariffs on China for its purchases, Trump said, "Could happen, could happen. Depends on how we do. Could happen."
On another question on possible tariffs on China for its purchases of Russian oil, he said, "It may happen, I do not know, I cannot tell you yet. We did it with India. We are doing it probably with a couple of others. One of them could be China."
Reacting to Trump's additional tariffs, the Ministry of External Affairs (MEA) said in a statement that it is "extremely unfortunate" that the US should choose to impose additional tariffs on India for actions that several other countries are also taking in their own national interest.
"We have already made clear our position on these issues, including the fact that our imports are based on market factors and done with the overall objective of ensuring the energy security of 1.4 billion people of India," the MEA statement said, adding that the US has in recent days targeted India's oil imports from Russia.
"We reiterate that these actions are unfair, unjustified and unreasonable. India will take all actions necessary to protect its national interests," it said.
In the executive order, Trump said he has determined that "it is necessary and appropriate to impose an additional ad valorem duty on imports of articles of India, which is directly or indirectly importing Russian Federation oil".
"I find that the Government of India is currently directly or indirectly importing Russian Federation oil. Accordingly, and as consistent with applicable law, articles of India imported into the customs territory of the United States shall be subject to an additional ad valorem rate of duty of 25 per cent," Trump said in the executive order.
He also announced that the US will be putting a tariff of approximately 100 per cent on chips and semiconductors coming into the country. "But if you are building in the United States of America, there is no charge.... If you have made a commitment to build, or if you are in the process of building, as many are, there is no tariff."
India buys about 88 per cent of its crude oil, which is converted into fuels like petrol and diesel, from overseas. Russian oil made up for hardly 0.2 per cent of all crude oil that India imported till 2021. After Moscow invaded Ukraine, Russian oil was available at a discount to international benchmarks due to western sanctions, and was quickly lapped up by Indian refiners. Russia is now India's largest oil supplier.
In July, India imported about five million (50 lakh) barrels of oil a day, of which 1.6 million (16 lakh) came from Russia.
After the new levy, India will attract the highest tariff of 50 per cent along with Brazil. After this, India's competitors will be much better placed in the US market as their duty is lower -- Myanmar (40 per cent), Thailand and Cambodia (both 36 per cent), Bangladesh (35 per cent), Indonesia (32 per cent), China and Sri Lanka (both 30 per cent), Malaysia (25 per cent), the Philippines and Vietnam (both 20 per cent).
The announcement comes at a time when a team from Washington is scheduled to visit India from August 25 for the sixth round of negotiations for the proposed bilateral trade agreement (BTA).
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NATO, others turn down US call for help in Hormuz: Trump
Washington (PTI): President Donald Trump on Tuesday said NATO and most of US' other allies have rejected his calls to help secure the Strait of Hormuz as the war with Iran entered the third week.
In a social media post, Trump asserted that Iran’s military has been “decimated” and he no longer felt the need for assistance from NATO countries or anyone else.
Last week, Trump had sought help from European nations and others who depend on oil supplies transiting from the Hormuz Strait to safeguard the critical waterway.
“The United States has been informed by most of our NATO “Allies” that they don’t want to get involved with our Military Operation against the Terrorist Regime of Iran, in the Middle East, this, despite the fact that almost every Country strongly agreed with what we are doing, and that Iran cannot, in any way, shape, or form, be allowed to have a Nuclear Weapon,” the US President said in a post on Truth Social.
Iran's attacks on Gulf nations and its grip on the Strait of Hormuz, through which a fifth of the world's oil is transported, have sparked increasing concerns of a global energy crisis and are unnerving the world economy.
“I am not surprised by their action, however, because I always considered NATO, where we spend Hundreds of Billions of Dollars per year protecting these same Countries, to be a one-way street — We will protect them, but they will do nothing for us, in particular, in a time of need,” Trump said.
He said Australia, Japan and South Korea too have turned down his call for help.
“Fortunately, we have decimated Iran’s Military – Their Navy is gone, their Air Force is gone, their Anti-Aircraft and Radar is gone and perhaps, most importantly, their Leaders, at virtually every level, are gone, never to threaten us, our Middle Eastern Allies, or the World, again,” Trump said.
He said that given the scale of recent military successes, the US no longer "need" or desires assistance from NATO countries, adding that it never relied on such support in the first place.
Speaking as President of the United States, the "most powerful" country in the world, "we do not need" help from anyone, Trump said.
The West Asia conflict began on February 28 when the US-Israeli combine conducted airstrikes on Iran.
The Strait of Hormuz, the narrow waterway that connects the Persian Gulf to the open ocean, has effectively been shut following the US and Israel attack on Iran and Tehran's sweeping retaliation.
However, Iranian Foreign Minister Abbas Araghchi had said that from Tehran's "perspective", the strait is "open". "It is only closed to Iran's enemies, to those who carried out unjust aggression against our country and to their allies.”
Earlier in the day, a second Indian-flagged LPG tanker, Nanda Devi, reached the country after safely sailing from the war-hit Strait of Hormuz. On Monday, the first ship, Shivalik, reached Mundra port in Gujarat.
As of now, 22 Indian vessels remain on the west side and two on the east side of the strait.
Indian authorities are in constant touch with all the relevant stakeholders in the region to secure the safe passage of the remaining ships, officials said.
