Washington DC [US], August 4 : US President Donald Trump on Monday said that the United States will "substantially raise" the tariff paid by India for buying "massive amounts of Russian Oil", stating that much of the oil purchased from Moscow is being sold in the open market "for big profits".
Trump's announcement, made on his social media platform Truth Social, came days after he announced a 25 per cent reciprocal tariff on India and an unspecified penalty for importing oil from Russia.
"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. Thank you for your attention to this matter!!!" the US President said in the post.
India has defended its sovereign right to conduct energy policy based on national interest.
The government has clarified that India's energy purchases are guided by market dynamics and national interests.
"You are aware of our broad approach to energy sourcing requirements, that we look at what is available in the market and the prevailing global situation. We are not aware of any specifics," MEA Spokesperson Randhir Jaiswal said last week, answering queries on Trump's announcement of a penalty for purchasing Russian oil.
Answering another query, Jaiswal said India's relations with any country are based on their own merit and shouldn't be viewed through the lens of third countries.
"Our ties with any country stand on their merit and should not be seen from the prism of a third country. As far as India-Russia relations are concerned, we have a steady and time-tested partnership," he added.
Answering a query on Friday, Trump indicated that if India stops buying Russian, it will be a good step.
"I understand that India is no longer going to be buying oil from Russia. That's what I heard, I don't know if that's right or not. That is a good step. We will see what happens..." said Trump.
Trump announced the imposition of 25 per cent tariffs on Indian goods and a penalty for importing Russian oil in the last week of July, even as there were hopes of an interim India-US trade that would have otherwise helped avoid elevated tariffs.
There are apprehensions that global crude prices could jump to USD 200 a barrel if India were to stop buying Russian oil, which will severely harm consumers.