'Buying Russian oil not only reason': US on India tariff
What's the story
United States Secretary of State Marco Rubio has expressed concern over India's continued purchase of Russian oil. Speaking on Fox Radio, he said these purchases are "most certainly a point of irritation" in the US-India relationship. He said that despite the availability of other oil vendors, India continues to buy large volumes from Russia, which helps sustain Moscow's war efforts in Ukraine. This is frustrating President Donald Trump, he said.
Statement
'Not the only point of irritation'
"India has huge energy needs, and that includes the ability to buy oil and coal and gas and things that it needs to power its economy like every country does, and it buys it from Russia because Russian oil is sanctioned and cheap," Rubio said. "Unfortunately, that is helping to sustain the Russian war effort. So it is most certainly a point of irritation in our relationship with India—not the only point of irritation," he added.
Trade tensions
Trade tensions between US and India
Rubio also highlighted other points of contention between the two countries, particularly over trade. A major sticking point in negotiations for a trade deal is India's reluctance to open its agriculture and dairy sectors. The US wants more access to these markets, especially for genetically modified crops and products such as corn and soybeans. India fears this could hurt millions of small farmers by allowing cheaper US farm goods into its market.
Market expansion
Other sectors where US wants access
Apart from agriculture and dairy, the US is also looking for better access to other Indian markets. These include sectors such as automobiles, medical devices, pharmaceuticals, and alcoholic beverages. The US has been pushing India to reduce non-tariff barriers and ease customs regulations. It also wants changes in data storage laws, patent rules, and digital trade regulations in India.
Escalating disputes
Trump threatens 25% tariffs on Indian imports
Trump, on Thursday, said that while "India is our friend, we have, over the years, done relatively little business with them because their tariffs are far too high...and they have the most strenuous and obnoxious non-monetary Trade Barriers of any country." He also slammed India and Russia for their strong ties, stating that the two countries can bring down their "dead economies together." As such, India will be paying a 25% tariff, plus a penalty, beginning August 1, he stated.