In one of the strongest comments from the Trump administration on India, a senior official at the White House on Monday accused Delhi of imposing “massive” tariffs on American goods and “cheating” the US immigration system, in addition to purchasing of Russian oil despite US sanctions over its war with Ukraine.
The remarks from Stephen Miller, deputy chief of staff at the White House and one of Trump’s most influential aides, came as India and the US hold negotiations to reach an agreement on trade tariffs.
Miller’s comments – one of the strongest yet by the Trump administration – came amid reports that New Delhi would keep purchasing Russian oil despite US threats.
“What he (Trump) said very clearly is that it is not acceptable for India to continue financing this war by purchasing the oil from Russia…People will be shocked to learn that India is basically tied with China in purchasing Russian oil. That’s an astonishing fact,” Stephen Miller said on Fox News’ “Sunday Morning Futures.”
Miller’s comments – one of the strongest yet by the Trump administration – came ahead of visit from the US team to Delhi on August 25.
He claimed that Trump “wants a tremendous relationship and has always had a tremendous relationship with India” and Prime Minister Narendra Modi.
“But we need to get real about dealing with the financing of this war…So, President Trump, all options are on the table to deal diplomatically, financially and otherwise with the ongoing war in Ukraine, so we can achieve peace,” he added.
Despite US pressure, PM Modi has struck a defiant tone, insisting that India’s trade ties with Russia was necessary to shield India’s economic interests during uncertain global conditions.
Pivot From Russian Crude May Increase India Oil Bill by $9-11 Billion
According to estimates, India’s import bill could rise by $9-11 billion if it is forced to pivot away from Russian oil.
“Financially, the implications are substantial. If a USD 5 per barrel discount is lost across 1.8 million barrels per day, India’s import bill could increase by USD 9-11 billion annually. If global prices rise further due to reduced Russian supply, the cost could be even higher,” as stated in the report by global real-time data and analytics firm Kpler, cited by PTI.
Last fiscal, India crude import totalled Rs 1.14 lakh crore.
India, as the world’s third-largest oil consumer and importer, has significantly benefited from deep discounts from Russia following sanctions from the US and West following its invasion of Ukraine in February 2022.
From less than 0.2% of India’s imports, Russian oil now represents 35-40% of India’s crude intake. This change has helped India reduce overall energy import costs, stabilize retail fuel prices, and manage inflation.
Indian oil companies refine the oil and export petroleum products, even to countries that have imposed sanctions on direct imports from Russia. This dual strategy has led Indian oil companies to achieve record profits.