U.S. President Donald Trump said on Friday he does not need to immediately impose retaliatory tariffs on countries such as China for buying Russian oil, though he may revisit the issue “in two or three weeks”, reported Reuters quoting Fox News.
Trump has threatened fresh sanctions on Moscow and secondary penalties on nations purchasing its crude if no steps are taken to end the war in Ukraine. India and China remain Russia’s two largest oil buyers.
Last week, Trump announced an additional 25% tariff on Indian exports, citing New Delhi’s continued oil imports from Russia. But he has not yet taken similar action against Beijing.
Asked by Fox News whether such measures were under consideration after his Alaska summit with Russian President Vladimir Putin yielded no deal on Ukraine, Trump replied: “Well, because of what happened today, I think I don’t have to think about that. Now, I may have to think about it in two weeks or three weeks or something, but we don’t have to think about that right now. I think, you know, the meeting went very well.”
At the same time, Xi and Trump are negotiating a potential trade deal aimed at easing tensions and reducing import taxes between the world’s two largest economies. Still, if Washington escalates punitive measures, China could emerge as the biggest target after Russia.
Trump tariffs and Russian oil
Earlier, Trump claimed that the tariffs imposed on India for purchasing oil from Russia have influenced Moscow’s decision to seek a meeting with Washington, as the country was losing its “second largest customer”.
In an interview with Fox News on Thursday, Trump said, “I think everything has an impact,” and claimed that when he told India that “we’re going to charge you, because you’re dealing with Russia and oil purchases”, it “essentially took them out of buying oil from Russia”.
“And then they (Russia) called, and they wanted to meet. We’re going to see what the meeting means. But certainly, when you lose your second largest customer, and you’re probably going to lose your first largest customer, I think that probably has a role.
“India was the second largest, and getting pretty close to China. China is the largest (purchaser of Russian oil),” the US president said.
No pause on Russian oil
India on Thursday said it has not halted oil purchases from Russia in response to the US President’s tariff threat and continues to buy based solely on economic considerations.
Trump last week announced an additional 25 per cent tariff on US imports from India — raising the overall duty to 50 per cent — as a penalty for the country’s continued imports of Russian oil. The tariffs will come into effect from August 27.
Since the steep tariffs are likely to hit the USD 40 billion of non-exempt exports that India does to the US, there has been chatter around stopping or curtailing oil imports from Russia.
However, AS Sahney, Chairman of Indian Oil Corporation (IOC), the country’s largest oil firm, has clarified that there is “no pause” on Russian oil imports, and India’s intent to continue buying Russian oil remains unchanged.
Responding to the US tariffs, the Ministry of External Affairs had said that the targeting of India is unjustified and unreasonable.
“Like any major economy, India will take all necessary measures to safeguard its national interests and economic security,” it said.
Trump has said that India’s purchasing of Russian oil is “fuelling” the war machine.
