After Putin Meet, Trump Signals No Rush On Secondary Tariffs On China For Purchasing Russian Oil

US President Donald Trump on Friday (16 August) claimed Russia had lost India as an oil customer after Washington announced tariffs on New Delhi for its crude imports from Moscow, though he hinted he may not apply secondary tariffs on other nations still buying Russian oil, NDTV reported.

Trump’s comments came despite New Delhi not confirming any suspension of Russian oil imports after Washington imposed a 25 per cent duty on Indian goods last month, which was later raised to 50 per cent.

The higher tariff is set to take effect on 27 August.

Washington has warned of direct sanctions on Russia and secondary measures against its oil buyers unless steps are taken to end the Ukraine conflict.

India and China remain the largest purchasers of Russian crude.

"Well, he (Russian President Vladimir Putin) lost an oil client, so to speak, which is India, which was doing about 40 per cent of the oil. China, as you know, is doing a lot...And if I did what's called a secondary sanction, or a secondary tariff, it would be very devastating from their standpoint. If I have to do it, I'll do it. Maybe I won't have to do it," Trump told Fox News before departing for Alaska for a high-stakes meeting with his Russian counterpart Vladimir Putin.

No agreements were signed in the Trump-Putin Summit in Alaska but both leaders projected cautious optimism about the future of US–Russia ties and the conflict in Ukraine.

Putin called the talks “long overdue” and said relations had “fallen to the lowest point since the Cold War.”

He stressed the need to shift from confrontation to dialogue and highlighted Ukraine as a central topic, expressing hope that “the Ukrainians and Europeans choose to not throw a wrench in” the peace process.

Trump described the discussions as “very productive,” saying progress had been made on several issues but acknowledging that major sticking points remain.

Following the meeting, Trump said he may consider imposing tariffs on countries purchasing Russian oil “in two or three weeks,” though not immediately.

He was asked by Fox News' Sean Hannity if he was now considering such action against Beijing after he and Russian President Vladimir Putin failed to produce an agreement to resolve or pause Moscow's war in Ukraine.

"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," he said.

On 6 August, Trump stepped up his trade offensive by first imposing a 25 per cent tariff and later doubling it to 50 per cent on Indian products over India’s continued imports of Russian crude.

New Delhi denounced the move as “unfair, unjustified and unreasonable,” warning it would severely impact industries like textiles, seafood, and leather exports.

Prime Minister Narendra Modi had earlier said India would not yield to economic coercion.

As a result, India now faces the maximum US tariff rate of 50 per cent, the same level applied to Brazil.

Russia and China joined others in criticising Trump, accusing Washington of applying illegal trade pressure on India.

A Bloomberg report claimed India's state-owned refiners stopped buying Russian crude after Trump's action even though the government has not confirmed this.

On Thursday, IOC chairman AS Sahney said India has not halted oil purchases from Russia and continues to buy solely on the basis of economic considerations.

India emerged as one of the Russia’s biggest crude buyer in 2022 after Western nations cut purchases and sanctioned Moscow over its invasion of Ukraine.

A State Bank of India report estimates that halting Russian crude imports could raise India’s oil bill by $9 billion this year and $12 billion next year.

It suggested that India turn to Iraq, its pre-war top supplier, along with Saudi Arabia and the UAE, if Russian oil is cut off.

Also Read: Putin, Trump Hold Landmark Alaska Summit Amid Ukraine War, Call Talks ‘Productive’ But No Deal Reached