US Treasury Secretary Scott Bessent has issued a stark warning that Washington could impose additional secondary tariffs on India, with the decision potentially hinging on the outcome of President Donald Trump's highly anticipated meeting with Russian President Vladimir Putin in Alaska on Friday. Speaking in an exclusive interview with Bloomberg TV on Wednesday, Bessent emphasized the administration's serious concerns about India's continued energy trade with Russia, stating that "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."
The warning comes amid escalating tensions over India's strategic decision to increase imports of discounted Russian crude oil since the Ukraine war began. Earlier this month, the Trump administration imposed a significant 25% penalty on India in addition to existing 25% tariffs specifically targeting the country's purchases of oil and weapons from Russia. This aggressive trade policy reflects Washington's broader strategy to pressure nations that continue energy relationships with Moscow while the US attempts to mediate a ceasefire between Russia and Ukraine. On Wednesday, Trump issued his own warning of "severe consequences" if Russia fails to agree to a comprehensive peace deal.
The upcoming Trump-Putin summit in Anchorage represents a critical diplomatic moment that could reshape global trade relationships and sanctions policies. Bessent's Bloomberg interview revealed frustration with European allies, as he stated, "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. The Europeans need to join us in these sanctions. The Europeans need to be willing to put on these secondary sanctions." This push for European cooperation highlights the administration's desire to create a unified Western front against countries maintaining economic ties with Russia.
India's dramatically increased reliance on Russian crude has become a major source of friction in India-US relations and has significantly disrupted ongoing trade negotiations between the two countries. Russian oil imports now comprise 35% to 40% of India's total oil imports in 2024, representing a massive surge from just 3% in 2021. Delhi has consistently defended these purchases, arguing that as one of the world's largest energy importers, the nation must secure the most affordable crude oil available to protect millions of impoverished Indians from devastating energy cost increases. This economic pragmatism has put India at odds with US foreign policy objectives.
The Treasury Secretary's latest comments follow his previous characterization of India as "bit recalcitrant" during trade negotiations, as stated in a Fox Business interview on Tuesday. President Trump has repeatedly labeled India a "tariff abuser" and remains determined to address the substantial $45 billion trade deficit with Asia's third-largest economy. The administration's tariff strategy forms part of Trump's broader economic plan to strengthen the US economy and create more equitable global trade relationships.
Trade negotiations between Delhi and Washington have been ongoing for several months, with US negotiators scheduled to arrive in India on August 25 to resume discussions. However, trade experts identify India's steadfast refusal to reduce duties on agricultural and dairy products as a significant obstacle in reaching a comprehensive agreement. The impasse has complicated efforts to resolve broader economic disputes between the two democratic nations.
Trump's most recent tariff escalation will impose a devastating 50% tariff rate on Indian goods, set to take effect on August 27. Trade analysts warn this unprecedented rate essentially functions as an embargo on bilateral trade between the world's largest and most populous democracies. The new tariffs will make India the most heavily penalized US trading partner in Asia, with severe consequences expected for India's export-focused industries including textiles, jewelry, and manufacturing sectors. Economic projections suggest these tariffs could reduce India's GDP growth by as much as half a percentage point, potentially affecting millions of workers in export-dependent industries.
#united states #usa #putin #trump
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