In light of ongoing trade talks, the US Treasury Secretary has warned that the outcome of the impending Trump-Putin summit may influence tariffs on India, putting strain on US-India relations.
US Considers Increased Tariffs on India Amid Tense Trump-Putin Meeting
US Considers Increased Tariffs on India Amid Tense Trump-Putin Meeting
Rising geopolitical tensions could lead to economic repercussions as the US contemplates additional tariffs on India.
As President Donald Trump prepares for critical peace talks with Russian President Vladimir Putin, the stakes are not only geopolitical but also economic, particularly for India. US Treasury Secretary Scott Bessent has indicated that if discussions fail, Washington may impose additional tariffs on India. This possibility arises from the US's existing punitive measures related to India's purchases of Russian oil, which have recently expanded.
In an exclusive interview with Bloomberg TV, Bessent stated, "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." Earlier this month, President Trump introduced a 25% levy on Indian imports, compounded by a further 25% tariff associated with India's transactions involving Russian oil and military equipment.
As the US seeks to mediate a ceasefire between Russia and Ukraine, Trump has issued warnings of "severe consequences" if Moscow does not comply with a peace agreement. This meeting, set for Friday in Anchorage, could determine not only diplomatic outcomes but also economic relations, particularly with India, which has significantly increased imports of Russian crude oil since the onset of the war in Ukraine.
India's dependence on Russian oil, which accounted for up to 40% of its imports this year, has raised eyebrows in Washington and created friction in trade negotiations. Bessent noted, "President Trump is meeting with President Putin, and the Europeans are in the wings carping about how he should do it, what he should do." He urged the European partners to support additional sanctions, emphasizing that India's approach has been "a bit recalcitrant" in ongoing trade discussions.
Trade negotiations between the US and India have faced continuous hurdles, primarily driven by India's unwillingness to lower tariffs on its agricultural and dairy sectors. Trump's new tariff, which is projected to take effect on August 27, poses significant challenges for India and could result in a substantial economic downturn, impacting its textile and jewelry export sectors.
As both geopolitical and economic equations evolve, the upcoming talks may reshape not only international diplomacy but also the trade dynamics between one of Asia's largest economies and the US.
