US Warns of Higher Tariffs on India if Trump-Putin Talks Stall on Ukraine
- US Treasury Secretary Scott Bessent says India’s 25% secondary tariff could rise if Trump-Putin talks on Ukraine fail.
- MEA calls the tariff 'unfair' and vows to protect national interests.
- CEA Nageswaran expects tariff tensions to ease within 1-2 quarters, with focus needed on long-term supply chain and AI challenges.
US Treasury Secretary Scott Bessent has warned that Washington could raise its current 25% secondary tariff on India if President Donald Trump’s meeting with Russian President Vladimir Putin in Alaska on Friday fails to make progress on the Ukraine conflict. He also urged the European Union to impose a similar levy on India.
“We put a secondary tariff on Indians for buying Russian oil, and I could see if things don’t go well (in the Trump-Putin meeting), then sanctions or secondary tariffs could go up”, Bessent told. “The Europeans need to join us in these sanctions. The Europeans need to be willing to put on these secondary sanctions”.
The existing 25% secondary tariff, introduced earlier this year, raised the total American tariff on Indian goods to 50%. India’s Ministry of External Affairs (MEA) called the move 'unfair, unjustified and unreasonable' on August 6 and said it would take all necessary steps to protect national interests.
When asked about China’s role as the largest purchaser of Russian crude, Bessent said Trump may warn Putin that 'all options are on the table', adding that sanctions 'can go up, they can be loosened, they can have a definitive life, they can go on indefinitely'. In an earlier Fox Business interview, Bessent described India as 'a bit recalcitrant' in its trade talks with the US.
Commenting on the trade tensions, India’s Chief Economic Advisor (CEA) V Anantha Nageswaran said in Mumbai on Wednesday that tariff-related challenges from the US would likely ease within one or two quarters. “I do believe that the current situation will ease out in a quarter or two. I don’t think that from a long-term picture the India impact will be that significant, but in the short run there will be some impact”, he said.
Nageswaran also noted that the outcome of the Trump-Putin meeting in Alaska could influence whether US officials visit India for trade talks later this month. He urged the private sector to remain proactive and not allow tariff disputes to overshadow more pressing concerns, such as the impact of artificial intelligence, dependence on a single country for critical minerals, and strengthening global supply chains.
