Trump again threatens India with harsh tariffs over Russian oil purchases; Kremlin calls threat illegal

Highlights:

• Trump has not yet been able to reach trade deal with India
• Trump recently criticized India over Russia ties and BRICS
• India says it is protecting its own interests, calls its targeting unreasonable

US President Donald Trump again threatened on Monday to raise tariffs on goods from India over its Russian oil purchases, while New Delhi called his attack "unjustified" and vowed to protect its economic interests, deepening the trade rift between the two countries.

In a social media post, Trump wrote, "India is not only buying massive amounts of Russian Oil, they are then, for much of the Oil purchased, selling it on the Open Market for big profits. They don't care how many people in Ukraine are being killed by the Russian War Machine."

"Because of this, I will be substantially raising the Tariff paid by India to the USA," he added.

A spokesperson for India's foreign ministry said in response that India will "take all necessary measures to safeguard its national interests and economic security."

"The targeting of India is unjustified and unreasonable," the spokesperson added.

Meanwhile, Russia accused the US of exerting illegal trade pressure on India over the threats.

"We hear many statements that are in fact threats, attempts to force countries to cut trade relations with Russia. We do not consider such statements to be legal," Kremlin spokesman Dmitry Peskov told reporters.

"We believe that sovereign countries should have and do have the right to choose their own trading partners, partners for trade and economic cooperation, and to choose for themselves the forms of trade and economic cooperation that are in the interests of a particular country."

Trump has said that from Friday he will impose new sanctions on Russia as well as on countries that buy its energy exports, unless Moscow takes steps to end its 3-1/2 year war with Ukraine. Russian President Vladimir Putin has shown no public sign of altering his stance despite the deadline.

Over the weekend, two Indian government sources told Reuters that India will keep purchasing oil from Russia despite Trump's threats.

India has faced pressure from the West to distance itself from Moscow since Russia invaded Ukraine in early 2022. New Delhi has resisted, citing its longstanding ties with Russia and economic needs.

Trump had already in July announced 25% tariffs on Indian imports, and US officials have cited a range of geopolitical issues standing in the way of a US-India trade accord.

Trump has also cast the wider BRICS group of developing nations as hostile to the United States. Those nations have dismissed his accusation, saying the group promotes the interests of its members and of developing countries at large.

CRUDE BUYER

India is the biggest buyer of seaborne crude from Russia, importing about 1.75 million barrels per day of Russian oil from January to June this year, up 1% from a year ago, according to data provided to Reuters by trade sources.

India began importing oil from Russia because traditional supplies were diverted to Europe after the outbreak of the Ukraine conflict, the Indian spokesperson said, calling it a "necessity compelled by global market situation."

The spokesperson also noted the West's, particularly the European Union's, bilateral trade with Russia: "It is revealing that the very nations criticizing India are themselves indulging in trade with Russia."

Despite the Indian government's defiance, the country's main refiners paused buying Russian oil last week, sources told Reuters. Discounts to other suppliers narrowed after Trump threatened hefty tariffs on countries that make any such purchases.

Indian government officials denied any policy change.

The country's largest refiner, Indian Oil Corp, has bought 7 million barrels of crude from the United States, Canada and the Middle East, four trade sources told Reuters on Monday.

India also has been frustrated by Trump repeatedly taking credit for an India-Pakistan ceasefire that he announced on social media in May, which halted days of hostilities between the nuclear-armed neighbors.

The unpredictability of the Trump administration creates a challenge for Delhi, said Richard Rossow, head of the India program at Washington's Center for Strategic and International Studies.

"India's continued energy and defense purchases from Russia presents a larger challenge where India does not feel it can predict how the Trump administration will approach Russia from month to month," he said.