US threatens more tariffs on India ahead of Trump–Putin Alaska talks; New Delhi responds

Mint

a day ago

The United States has been relentless on its Donald Trump induced tariff war, as US treasury Secretary has warned another spate of secondary tariffs on India over Russian oil trade. Washington has accused New Delhi of 'fuelling' the war machinery of Russia, by buying their oil at discounted prices. This comes as US President Donald Trump is headed to Alaska to meet Russia's Vladimir Putin to seal a deal to 'stop' the Ukraine war.
Treasury Secretary Scott Bessent has warned that secondary tariffs could be raised depending on the outcome of President Donald Trump's high-stakes meeting with Russian President Vladimir Putin in Alaska on Friday.
Speaking to Bloomberg TV on Wednesday, Bessent said Washington had already imposed secondary tariffs on India for purchasing Russian oil, and further measures were on the table if negotiations with Moscow failed to produce results.
'We've put secondary tariffs on Indians for buying Russian oil. And I could see, if things don't go well, then sanctions or secondary tariffs could go up,' he remarked.
The warning comes against the backdrop of strained India–US ties, fuelled by Delhi's rising imports of discounted Russian crude since the start of the Ukraine war. Russian oil accounted for 35–40% of India's total crude imports in 2024, a sharp increase from just 3% in 2021.
India has defended its buying strategy, citing the need to secure affordable energy for its vast population amid volatile global prices.
During a press briefing on Thursday, MEA spokesperson Randhir Jaiswal described India–US relations as a comprehensive global strategic partnership, grounded in shared interests, democratic values, and strong bilateral ties. He noted that the partnership has endured various transitions and challenges in the past, expressing hope that it will continue to advance on the basis of mutual respect and common interests.
He further stated, 'We have already issued our statement and would draw your attention to it.'
Trump and Putin are set to meet in Anchorage on Friday in a bid to broker a ceasefire between Russia and Ukraine. The US president has warned of 'severe consequences' if Moscow refuses to agree to a peace deal.
Bessent urged European nations to align more closely with Washington's sanctions regime, saying, 'The Europeans need to join us in these sanctions. The Europeans need to be willing to put on these secondary sanctions.'
Trade negotiations between the two nations have been ongoing for months but remain stuck on key issues, including India's high tariffs on agricultural and dairy products. The tensions have deepened after Trump announced a new 50% tariff rate on Indian goods, due to take effect on 27 August — a move some analysts have likened to an informal trade embargo.
The higher tariff would make India the most heavily taxed US trading partner in Asia, dealing a potential blow to key export-oriented sectors such as textiles and jewellery. Economists warn it could shave as much as 0.5% off India's GDP growth.
The US administration has framed the tariffs as part of a broader plan to 'make global trade fairer' and to narrow America's $45 billion trade deficit with India. Trump has repeatedly accused India of being a 'tariff abuser' and is keen to use trade policy as leverage in both economic and geopolitical negotiations.
US trade envoys are expected to arrive in New Delhi on 25 August to resume talks — but with the Alaska meeting looming, the outcome could hinge on a separate stage entirely.