The United States has signalled it may raise secondary tariffs on India if Friday’s high-stakes meeting between President Donald Trump and Russian President Vladimir Putin in Alaska fails to yield a peace deal on Ukraine.
Speaking to Bloomberg TV on Wednesday, US Treasury Secretary Scott Bessent linked the potential tariff hike to the outcome of the talks, saying:
“We’ve already placed secondary tariffs on Indians for buying Russian oil. If things don’t go well, those sanctions or tariffs could rise further.”
Earlier this month, the Trump administration imposed an additional 25% penalty on Indian imports, on top of an existing 25% tariff, for purchases of Russian oil and weapons.
Trump, who is pushing for a ceasefire between Moscow and Kyiv, warned on Wednesday of “very severe consequences” if Russia refused to agree to a deal. The Anchorage summit will be his first face-to-face meeting with Putin since returning to office.
Bessent also urged Europe to toughen its stance, saying EU nations “need to join us in these sanctions” rather than “carping from the sidelines” about how Washington should handle negotiations.
India’s imports of discounted Russian crude have surged since the start of the Ukraine war, rising from just 3% of its oil basket in 2021 to 35–40% in 2024.
Delhi insists its purchases are an economic necessity to shield millions from rising fuel prices, but the trend has strained US-India relations and stalled ongoing trade talks.
In a separate interview with Fox Business on Tuesday, Bessent described India as “a bit recalcitrant” in trade negotiations, pointing to disputes over agricultural and dairy market access.
Trump has long accused India of being a “tariff abuser” and is determined to narrow the $45bn trade deficit with Asia’s third-largest economy.
His newly announced 50% tariff rate on Indian goods, due to take effect on 27 August, would make India the most heavily taxed US trading partner in Asia.
Analysts warn the measure, which they liken to a partial trade embargo, could cripple export-dependent sectors such as textiles and jewellery, potentially shaving up to 0.5% off India’s GDP growth.
US trade negotiators are expected in Delhi on 25 August, just two days before the new rates come into force.
