Trump Pressuring on India Over Russia Crude Purchases

US President Donald Trump's apparent endorsement of a proposed legislation seeking to impose "500%" tariff on Indian and Chinese imports should the countries buy Russian crude is part of a "pressure campaign" meant to force India to buy more American energy, Savio Rodrigues, a Bharatiya Janata Party (BJP) politician, told Sputnik India on Monday.

Rodrigues, a geopolitical analyst, said that the US threat directed at India should be seen as part of Trump’s "maximum pressure diplomacy".

Incidentally, Trump told reporters at the White House last week that the US had all but finalised a "very big" trade deal with India to "open up" the country. However, the Indian government is yet to confirm the development, with reports indicating that the ongoing India-US trade talks have been extended at least until Monday due to India's refusal to open up dairy and agricultural sectors to US imports. In an interview with Indian daily Financial Express, Finance Minister Nirmala Sitharaman described these sectors as "red lines" for India.

At present, officials from both the sides are looking to finalise the first tranche of the proposed bilateral trade agreement (BTA) before the 9 July deadline. The Trump administration announced a 26% tariff on Indian imports as part of the 'Liberation Day' tariffs, but later suspended them for 90 days till 9 July. However, a 10% baseline tariff on Indian imports entering the US remains in place.

For Rodrigues, Trump's tactic to announce a trade deal with India while floating punitive tariffs at the same time are part of his gameplan.

"Announcing a big trade deal while simultaneously floating punitive tariffs may seem contradictory, but for Trump, it’s classic negotiation strategy. He believes in creating leverage before striking deals. The underlying message to India is: align more closely with the US in energy and security interests—or be prepared to face economic consequences," Rodrigues stressed.

The ruling-party leader, however, suggested that the proposed legislative threat against India, which is a strategic partner of the US, were more "rhetorical than practical at this stage.

"They’re aimed at asserting dominance in negotiations rather than immediate enforcement. Trump is talking big, as usual," he commented.

According to Rodrigues, one of the underlying motives of Graham's proposed law could be "aggressively" promote American energy to India, which relies on imports to meet around 85% of its domestic requirements.

"India, which has diversified its energy portfolio, including discounted Russian crude, is seen as a large market the US wants to tilt more in its favor," he said. "But India’s energy security decisions are sovereign and strategic. India will buy from where it gets the best deal—just like the US would. That said, pressure tactics from Washington to push India into greater energy dependency on the US is real, and this proposed tariff is likely part of that chessboard."

The BJP politician echoied the official Indian line of securing energy depending on "market factors and prevailing global situation".

Russia has remained the biggest source of crude for India since Financial Year 2023-24. As far as the US is concerned, Foreign Secretary Vikram Misri announced during a briefing at the conclusion of Prime Minister Narendra Modi's visit to the White House in February that India would bolster its energy purchases from the US from $15 billion to $25 billion.

Sputnik Opinion

India to Import More Russian Crude in February: Oil Analyst

13 February, 20:28

Trump Pressuring India Over Russia Crude Purchases - BJP Politician