US Treasury Secretary Scott Bessent has warned that Washington might improve secondary tariffs on India.
He mentioned the choice would depend upon the result of President Donald Trump’s assembly with Russian counterpart Vladimir Putin in Alaska on Friday.
“We have put secondary tariffs on Indians for getting Russian oil. And I might see, If issues do not go properly, then sanctions or secondary tariffs might go up,” Bessent mentioned in an interview to Bloomberg TV on Wednesday.
Earlier this month, Trump imposed a 25% penalty on India along with 25% tariffs for getting oil and weapons from Russia.
The US has been attempting to mediate a ceasefire between Russia and Ukraine, and on Wednesday, Trump warned of “extreme penalties” if Moscow didn’t comply with a peace deal.
Trump and Putin are set to meet in Anchorage on Friday to debate the way to finish the battle in Ukraine.
“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 hitch us in these sanctions. The Europeans should be prepared to placed on these secondary sanctions,” Bessent mentioned.
Delhi’s elevated imports of low-cost Russian crude because the Ukraine battle have strained India-US relations and disrupted ongoing commerce talks with Washington.
Russian oil made up 35% to 40% of India’s oil imports in 2024 – up from 3% in 2021.
Delhi has defended its purchases of Russian oil, arguing that as a serious power importer, it should purchase the most cost effective obtainable crude to guard thousands and thousands of poor Indians from rising prices.
Bessent’s feedback come after he known as India a “bit recalcitrant” on commerce negotiations in an interview with Fox Business on Tuesday.
Trump says his tariffs are a part of his administration’s plan to spice up the US’ economic system and make world commerce fairer.
He has repeatedly known as India a tariff abuser and is eager to trim a $45bn (£33bn) commerce deficit with Asia’s third largest economic system.
Commerce negotiations between Delhi and Washington have been below means for a number of months, and are set to resume with US negotiators anticipated to reach in India on 25 August.
However consultants say India’s refusal to cut back duties on agriculture and dairy merchandise has been a serious thorn within the negotiations.
Trump’s new 50% tariff fee on India is ready to come back into impact on 27 August, which some consultants have mentioned is akin to an embargo on commerce between the 2 international locations.
It makes India probably the most closely taxed US buying and selling associate in Asia and is predicted to severely hamper its exports targeted industries like textiles and jewelry, and will drag India’s progress down by as a lot as half a %.
