US: More tariffs on India if Trump-Putin talks fail

US Treasury Secretary Scott Bessent has warned that Washington could raise secondary tariffs on India if talks between President Donald Trump and Russian President Vladimir Putin in Alaska on Friday fail to yield progress.

“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,” Bessent told Bloomberg TV on Wednesday.

Earlier this month, the Trump administration imposed an additional 25% penalty on India — on top of existing 25% tariffs — for importing oil and weapons from Russia. The move came amid Washington’s push to broker a ceasefire in the war between Russia and Ukraine. On Wednesday, Trump warned of “severe consequences” if Moscow rejected a peace deal.

Bessent urged European nations to match US sanctions efforts. “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… in these secondary sanctions,” he said.

India’s sharply increased purchases of discounted Russian crude since the war began have become a flashpoint in bilateral ties, stalling ongoing trade negotiations. Russian oil accounted for 35% to 40% of India’s total imports in 2024, up from just 3% in 2021.

New Delhi has defended its imports, saying that as a major energy consumer it must secure the cheapest available crude to shield millions of poor citizens from high costs.

Bessent’s latest remarks follow his description of India as “a bit recalcitrant” on trade talks in an interview with Fox Business on Tuesday.

Trump has argued that his tariffs are designed to strengthen the US economy and create a fairer global trading system.

Meanwhile, refiners in India are scouring the globe for alternative supplies, hedging their bets ahead of a summit between the US and Russian leaders.

India’s state processors have bought large volumes of non-Russian crude this week for prompt September-October delivery, extending a buying spree spurred by an early threat by Washington. Indian Oil Corp. and Bharat Petroleum Corp. have taken cargoes from all corners of the market including the US, but also Brazil and the Middle East.