CNN reports that “President Donald Trump is ratcheting up the pressure on India, calling into question the prospects of a deal with a key US trading partner just days before his tariff deadline.”
For some reason, India is in the fireline, first. The problem for India will be tariffs of 25% on US imports of Indian products.
Trump, in his Truth message points to the fact that India is the biggest buyer of Russian energy and also is buying Russian military equipments.
Trump is, therefore, threatening India with additional secondary sanctions which will hit India in the form of tariffs. Trump may hit with 100% additional tariffs – as long as India is trading with Russia.
India already said that it cannot avoid to purchase the cheap Russian energy. India is the third largest energy consumer in the World and cannot divert easily purchases from Russia to other sources. As well, if India suddenly will appear on the oil and gas markets (ex Russia), the prices will go through the roof and many other economies will be damaged or collapsing.
The secondary sanctions as planned against China may have an even worse effect on the World economy.
But India and China declared not leaving Russian oil and gas and will continue to trade with Russia. The rest of the World is looking curiously and frightened on Trump and his reactions.
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