US Threatens India with Higher Tariffs if Trump-Putin Talks Fail

US Treasury Secretary Scott Bessent issued a stark warning on Wednesday, stating that secondary tariffs on India could increase if the upcoming talks between President Donald Trump and Russian President Vladimir Putin in Alaska on Friday fail to yield positive outcomes. The warning follows Trump’s recent imposition of a 50% tariff on Indian goods, including a 25% penalty for India’s purchase of Russian oil, set to take effect on August 27.

In a Bloomberg TV interview, Bessent expressed frustration with Russia’s stance in the Ukraine conflict, suggesting Putin may now be open to negotiations. “We put secondary tariffs on the Indians for buying Russian oil. And I could see, if things don’t go well, then sanctions or secondary tariffs could go up,” he said. He also hinted at potential actions against China, the largest buyer of Russian crude, noting that Trump is adept at creating leverage and keeping “all options on the table.”

Bessent emphasized that sanctions could either escalate or be relaxed, depending on the talks’ outcome, and suggested targeting Russia’s “shadow fleet” of ships to tighten pressure. He urged European nations to join the US in imposing secondary sanctions, recalling a G7 meeting in Canada where he proposed a 200% tariff on China, met with reluctance from other leaders. “It’s put up or shut up time,” Bessent said, underscoring Trump’s commitment to ending the Ukraine war.

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India’s Ministry of External Affairs has called the tariffs “unjustified and unreasonable,” asserting that India’s oil imports are driven by market needs and energy security for its 1.4 billion citizens. The ministry vowed to take all necessary measures to protect national interests, highlighting the perceived double standards of countries criticizing India while maintaining their own trade with Russia.

As the Trump-Putin summit approaches, the outcome could significantly impact India’s economic relations with the US, with potential for heightened trade tensions or a path toward de-escalation.

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