President Trump and Putin are slated to engage in discussions aimed at quelling the ongoing conflict in Ukraine. Bessent stated, "We've imposed secondary tariffs on India for acquiring Russian oil. Should the talks fail, it's plausible that sanctions could escalate." Earlier in the month, Trump had already levied a 25% surcharge on Indian imports alongside 25% tariffs for oil and weaponry purchases from Russia, exacerbating tensions between New Delhi and Washington.
India's increasing reliance on affordable Russian crude — comprising 35% to 40% of its oil imports in 2024, a significant rise from 3% in 2021 — has further complicated US-India relations. The Indian government defends its oil purchases, citing the need to shield its population from soaring energy costs.
In a prelude to the talks, Bessent expressed dissatisfaction with India's stance on trade, labeling the country as "a bit recalcitrant." Despite ongoing trade negotiations which aim to address a $45 billion trade deficit, India's hesitance to lower tariffs on agricultural and dairy products continues to hinder progress.
With Trump proposing a new 50% tariff rate that will be enforced starting 27 August, experts speculate that this could create an effective embargo on US-India trade, positioning India as the most heavily taxed US trading partner in Asia. This could significantly impact India's export sectors, particularly textiles and jewelry, potentially squeezing economic growth.
As the world awaits the Trump-Putin discussions, the potential ramifications on India's trade relations with the US loom large.
India's increasing reliance on affordable Russian crude — comprising 35% to 40% of its oil imports in 2024, a significant rise from 3% in 2021 — has further complicated US-India relations. The Indian government defends its oil purchases, citing the need to shield its population from soaring energy costs.
In a prelude to the talks, Bessent expressed dissatisfaction with India's stance on trade, labeling the country as "a bit recalcitrant." Despite ongoing trade negotiations which aim to address a $45 billion trade deficit, India's hesitance to lower tariffs on agricultural and dairy products continues to hinder progress.
With Trump proposing a new 50% tariff rate that will be enforced starting 27 August, experts speculate that this could create an effective embargo on US-India trade, positioning India as the most heavily taxed US trading partner in Asia. This could significantly impact India's export sectors, particularly textiles and jewelry, potentially squeezing economic growth.
As the world awaits the Trump-Putin discussions, the potential ramifications on India's trade relations with the US loom large.
