Commercial negotiators of the United States have told their Indian counterparts to stop Russian oil purchases is crucial to reduce Indian tariff rate and seal a commercial agreement, two people familiar with conversations to conversations at the same time. Reuters.
While trade negotiations are on a positive path, said an American official, more work is needed to ensure that India addresses the concerns of the United States about access to the market, commercial deficit and purchases of Russian oil.
The president of the United States, Donald Trump, has tried to press India, the European Union and NATO members to stop Russian oil purchases as a way to reduce Moscow’s income and hurry the end of the war in Ukraine.
The Trump Administration has shown the will to use the maximum leverage to advance its policy objectives, as evidenced by its linking commercial negotiations with India to demand that it stops Russian oil purchases.
Trump has expressed a growing frustration for the slow progress towards the end of the Russian war in Ukraine, a conflict that promised to resolve from his first day in office.
The United States has already imposed an additional tariff of 25 percent to imports from India to press New Delhi to stop its purchases of Russian crude oil with a discount, which carries total punitive tasks of Indian goods to 50 percent and sour trade negotiations between the two democracies.
But Trump has refrained from imposing additional tariffs on Chinese imports on Russian oil purchases in China, since its administration navigates a delicate commercial truce with Beijing.
India and China are the two largest buyers of Russian oil, which is already subject to numerous US sanctions that have limited Moscow’s access to global markets.
In response, India has defended its imports of oil, emphasizing economic benefits and accusing Western nations of hypocrisy for continuous trade with Russia despite sanctions.
