Key points
- India penalised for importing discounted Russian oil, weapons
- Russian oil now forms 40pc of India’s import
- India–US trade talks stalled over agriculture, dairy tariffs
ISLAMABAD: US Treasury Secretary Scott Bessent has warned that Washington may raise secondary tariffs on India, depending on the outcome of President Donald Trump’s meeting with Russian President Vladimir Putin in Alaska on Friday.
US warns of additional tariffs on India if Trump-Putin peace talks failhttps://t.co/QqIMrCNGIs pic.twitter.com/VNHID3ykvt
— Sikh Federation (UK) (@SikhFedUK) August 14, 2025
“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,” Bessent said in an interview with the media on Wednesday.
Earlier this month, Trump introduced a 25 per cent penalty on top of the existing 25 per cent tariffs against India for buying Russian oil and weapons. The US has been pushing for a Ukraine ceasefire and, on Wednesday, Trump warned of “severe consequences” if Russia rejects a peace deal, according to the BBC.
Ending Ukraine war
The Trump-Putin meeting in Anchorage will focus on ending the Ukraine war. Bessent also criticised Europe, urging allies to support stronger sanctions, including secondary measures, against Russia.
India’s increased imports of discounted Russian crude since the Ukraine invasion have strained ties with the US and disrupted ongoing trade talks.
Russian oil now makes up around 35–40 per cent of India’s oil imports, up from just 3 per cent in 2021. Delhi has defended the purchases, citing the need to secure affordable energy for its population.
Tariff abuser
In a separate interview, Bessent described India as “a bit recalcitrant” during trade negotiations. Trump has long criticised India as a “tariff abuser” and wants to reduce a $45bn US trade deficit with the country.
Trade talks, ongoing for months, are due to resume when US negotiators arrive in Delhi on 25 August. However, India’s unwillingness to lower duties on agriculture and dairy remains a key obstacle.
The Indian PM banked on warm ties with his U.S. counterpart—but then came a whopping 50% tariff, writes @saliltripathi https://t.co/Gifkl0EfAr
— TIME (@TIME) August 8, 2025
A new 50 per cent tariff on Indian goods will take effect on 27 August, making India the most heavily taxed US trade partner in Asia. Analysts warn this could severely hit Indian exports and shave up to 0.5 per cent off the country’s economic growth.
