‘Oil weapon not quite tool of leverage’: Expert critiques Donald Trump’s India tariffs; calls policy 'hypocritical'

US President Doanld Trump wrongly assessed the effectiveness of sanctions as a means to pressure India, argued David Goldwyn, a prominent Geopolitical expert

"What he's learning in this fiasco, really, in terms of diplomatic relations with India, is that this oil weapon was not quite the tool of leverage that he thought it was. India is not as vulnerable... He underestimated the potency of that weapon and really misread Indian history," he said during an ANI interview.



The energy and geopolitical expert criticised the Trump administration's inconsistent approach to tariffs on India and labelled Washington's sanctions on India regarding Russian oil imports as a "deeply hypocritical policy."

Goldwyn stated, "It is a deeply hypocritical policy. So there's no question about that."

The remarks came after a potential easing of tensions over India-related tariffs appears to be emerging. On Tuesday, President Trump expressed optimism about reaching a "successful conclusion" and anticipated discussions with PM Modi in the coming weeks.

"I am pleased to announce that India and the United States of America are continuing negotiations to address the Trade Barriers between our two Nations. I look forward to speaking with my very good friend, Prime Minister Modi, in the upcoming weeks. I feel certain that there will be no difficulty in coming to a successful conclusion for both of our Great Countries!" Trump posted on Truth Social.

Also read: PM confident on India-US trade talks; Trump reshares Modi's post

The Trump administration implemented a substantial 50 per cent tariff on Indian goods, with 25 per cent applied earlier this month and an additional 25 per cent from August 27 as secondary sanctions, responding to New Delhi's ongoing Russian oil purchases. Conversely, Washington has postponed tariffs on China until November.

Addressing why the US hasn't imposed similar secondary sanctions on China, Goldwyn explained that Trump believed he held stronger negotiating power with India compared to China.

"The President had a lot of leverage, and he believes he has leverage over India, but he realises he doesn't have a lot of leverage with China. That's why tariffs have been delayed, negotiations extended, and he has not enforced sanctions or tariffs for Chinese imports of Russian crude," Goldwyn said.

Goldwyn noted that Trump refrained from sanctioning Chinese ports and vessels to avoid disrupting potential trade negotiations with Beijing. "This is a question of the president's perception of leverage. And the more leverage he thinks he has, the harder a bargain he drives."

Additionally, when questioned about Trump's ability to compel Chinese President Xi Jinping into a US agreement, Goldwyn dismissed this possibility but noted Trump's desire for a deal.

"I don't think that he believes that he can coerce Xi Jinping into a deal, but he does believe that there is a deal to be had. He thinks China could make energy purchases or give up some transactions, and that he can cut a deal. But it hasn't gone very well, which is why everything has been delayed," he further added.