Trump warns of tariff to Russian oil buyers! What will be the effect on India? – Donald Trump Warns Russian Oil Buyers of Tarrif how will India the top importer will be impacted ntcprk
A threat of US President Donald Trump has put a threat to India’s Russian oil purchase. On Sunday, President Trump said that he is upset with the slow process of peace talks with Russian President Vladimir Putin. He warned that if he felt that Russia was stopping his efforts to end the war with Ukraine, he would put additional tariffs on Russian oil buyers. Russia is India’s top oil supplier and if Trump does so, then there will be a lot of difficulty in front of India.
Trump threatened Russian oil buyers and said, ‘If you buy oil from Russia, you will not be able to do business in America. All types of Oil in Russia will have a tariff of 25-50%.
Trump has also been imposing reciperookle tariffs on all countries of the world including India from April 2, that is, the country which will impose tariffs on American goods, Trump will put the same tariff on their goods. India has no hope of getting a concession in tariffs as Trump has already made it clear that ‘the new tariff will apply to all countries’.
Indian refiners upset with Trump’s warning
Russia is India’s top oil supplier. Sources in India’s refining sector have said that it is not clear that if Trump follows his warning, will India scope to exemption or not.
Speaking to the Indian Express, a source said, ‘It is difficult to say how it will happen. We need more clarity about this when he talked about tariffs on Russian crude oil buyers, what did he mean by it. Will it be limited to tariffs, or will it include secondary tariffs on buyers. This is a great question.’
According to data from the Commodity Market Analytics firm Kepler, India’s Russian oil imports have been 18.5 lakh barrels per day (BPD) in the first 21 days of March, which is much higher than 14.7 lakh BPD in February and 16.4 lakh BPD in January.
What will be the effect of tariff on Russian oil buyers?
If Russian oil prices rise due to tariffs, then it can increase global oil prices. India gets Russian oil at relatively cheap prices and tariffs will be a big setback for India.
The Government of India and refiners have already said that they will not buy any oil that have been banned. India has not bought crude oil from Iran for years due to US sanctions. India was buying oil from Venezuela but has also reduced the purchase of oil in view of American sanctions. The US has exempted some oil companies from restrictions and through that India is buying some quantity of Venezuela oil.
‘India may have to stop purchasing oil from Russia’
Analysts say that Trump’s new tariff threat will not affect the oil prices. After Trump’s threat on Sunday, there has been a fall in oil prices on Monday. But if America moves towards putting tariffs on Russia oil buyers, according to experts, Indian refineries will stop purchasing Russian crude oil.
In such a situation, the refineries of India will turn to their traditional suppliers such as Iraq, Saudi Arabia and the United Arab Emirates (UAE) in the Middle East.
Crude oil prices affect the country’s economy and if it increases then inflation also increases. An analyst from the oil sector said, ‘If the US imposes tariffs, then India’s refinery companies will not continue import of crude oil from Russia. Companies will increase oil purchases from suppliers like Saudi Arabia and Iraq.
Global firm UBS analyst Geoani Stanovo says that the threat to supply from such warnings is increasing. He said, ‘Oil market is eyeing the threat of putting tariffs on Russia and Iranian oil. However, Trump has indicated that he is not going to put tariffs on Russian oil immediately. But in the future, the risk on supply is increasing.
