America has warned India of potential will increase in secondary tariffs if upcoming peace talks between US President Donald Trump and Russian President Vladimir Putin fail to yield a optimistic final result. US Treasury Secretary Scott Bessent delivered the warning on Wednesday, linking the choice on to the high-stakes summit scheduled for Friday in Alaska.
Tariffs Tied To Trump-Putin Summit
In an interview with Bloomberg TV, Bessent said, “We have put secondary tariffs on Indians for purchasing Russian oil. And I might see, If issues do not go properly, then sanctions or secondary tariffs might go up.” This comes after President Trump earlier this month imposed a 25% penalty on India, along with current 25% tariffs, particularly for its continued buy of oil and weapons from Russia.
The US is actively mediating a ceasefire within the ongoing battle between Russia and Ukraine. On Wednesday, President Trump himself issued a stark warning of “extreme penalties” if Moscow doesn’t conform to a peace deal through the Anchorage summit.
Bessent emphasised the necessity for European allies to affix in sanctions, stating, “President Trump is assembly with President Putin, and the Europeans are within the wings carping about how he ought to do it, what he ought to do. The Europeans want to affix us in these sanctions. The Europeans must be prepared to placed on these secondary sanctions.”
Strained Ties Over Russian Oil Imports
India’s elevated imports of low cost Russian crude because the Ukraine struggle started have considerably strained India-US relations, additional complicating ongoing commerce talks between Delhi and Washington. Russian oil now accounts for 35% to 40% of India’s oil imports in 2024, a dramatic rise from simply 3% in 2021.
Delhi has persistently defended its purchases of Russian oil, arguing that as a significant vitality importer, it’s crucial to purchase the most cost effective accessible crude to guard hundreds of thousands of its poor residents from rising prices.
Commerce Talks Underneath Stress
Bessent’s latest feedback comply with his earlier characterization of India as “bit recalcitrant” on commerce negotiations throughout a Tuesday interview with Fox Enterprise. President Trump views his tariffs as a part of a broader technique to spice up the US economic system and set up fairer world commerce practices. He has regularly labeled India a “tariff abuser” and goals to scale back a $45 billion commerce deficit with Asia’s third-largest economic system.
Commerce negotiations between Delhi and Washington have been underway for a number of months, with US negotiators anticipated to reach in India on August 25 to renew talks. Nevertheless, specialists level to India’s reluctance to scale back duties on agriculture and dairy merchandise as a significant sticking level within the discussions.
Including to the strain, Trump’s new 50% tariff price on India is slated to take impact on August 27. Some specialists counsel this new price is akin to an embargo on commerce between the 2 nations. If applied, it might make India essentially the most closely taxed US buying and selling companion in Asia, doubtlessly severely hampering India’s export-focused industries like textiles and jewellery, and will even drag India’s financial progress down by as a lot as half a %.