Written by Lisa Murimi
US Treasury Secretary Scott Bessent has warned that Washington could raise secondary tariffs on India, depending on the outcome of President Donald Trump’s meeting with Russian President Vladimir Putin in Alaska on Friday.
Speaking to Bloomberg TV on Wednesday, Bessent said, “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.”
Earlier this month, the Trump administration imposed a 25% penalty on India, in addition to existing 25% tariffs, over its purchases of oil and weapons from Russia.
The measures are part of Washington’s broader strategy to pressure Moscow amid efforts to broker a ceasefire in the Russia–Ukraine war. Trump has warned of “severe consequences” if Moscow rejects a peace deal.
Bessent criticised European allies for not matching US sanctions and urged them to join in imposing secondary penalties.
“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,” Bessent said.
His comments highlight Washington’s growing frustration with India’s increased imports of discounted Russian crude — which rose to 35–40% of India’s total oil imports in 2024, up from 3% in 2021.
India has defended the purchases, citing the need to secure affordable energy for its population. However, the policy has strained bilateral ties and disrupted ongoing trade negotiations.
Trump has previously called India a “tariff abuser” and aims to reduce the $45 billion US trade deficit with Asia’s third-largest economy.
Trade talks have stalled over Delhi’s refusal to cut duties on agricultural and dairy products. US negotiators are set to visit India on 25 August, just two days before Trump’s new 50% tariff rate takes effect.
Analysts say the rate, the highest imposed on any US trading partner in Asia, could slash Indian export earnings in key sectors like textiles and jewellery, and shave up to 0.5% off the country’s economic growth.
