Washington, DC [US] September 3 : President Donald Trump on Wednesday warned that the United States has not yet rolled out "Phase-2" and "Phase-3" tariffs against countries continuing trade ties with Russia. He called secondary sanctions on India a direct action against Russia, as "that cost hundreds of billions of dollars to Russia".
He said this when being asked about why he has taken no action against Russia after he assumed the Oval Office in January this year.
He also called India the largest buyer of Russian oil after China, indicating that New Delhi could face further penalties if it continues energy imports from Moscow.
While the US has temporarily suspended additional tariffs on China until November, India has been hit with steep levies. A 25 per cent tariff was imposed earlier this month, and an additional 25 per cent secondary sanction took effect on August 27, bringing the total to 50 per cent on Indian goods.
Trump further mentioned that these steps amounted to direct action against Russia, as they target its oil exports through major buyers.
"Would you say that putting secondary sanctions on India, the largest purchaser outside China, they are almost equal. Would you say there was no action? That cost hundreds of billions of dollars to Russia, you call that no action? I haven't done Phase-2 yet or Phase-3," Trump told reporters during a joint press conference with the Polish President at the White House.
The US president recalled his earlier warning that India would face "big problems" if it continued Russian oil purchases. "Two weeks ago, I said if India buys, India has got big problems, and that's what happens," Trump added.
Earlier, in a separate interview, Trump claimed that New Delhi has offered him a "no tariff" deal following Washington's decision to raise duties on Indian goods. Speaking on The Scott Jennings Radio Show, he said, "India was the most highly tariffed nation in the world, and you know what, they've offered me no tariffs in India anymore. If I didn't have tariffs, they would never make that offer."
Trump also repeated his belief that tariffs were essential in rebalancing trade. "China kills us with tariffs, India kills us with tariffs, Brazil kills us with tariffs. I've understood tariffs better than any human beings in the world," he said.
On Monday, Trump described the bilateral trade relationship as a "one-sided disaster," claiming that India had benefitted disproportionately over the decades. He argued that while India sells a "tremendous amount of goods" to the US, American companies have struggled to enter the Indian market due to high duties.
"They have now offered to cut their tariffs to nothing, but it's getting late. Until now, it was a totally one-sided relationship for many decades," he said.
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