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In a significant development, US President Donald Trump and Russian President Vladimir Putin are set to hold their first meeting in six years in Anchorage, Alaska, to discuss critical issues, including the ongoing Russia-Ukraine conflict. However, the outcome of this highly anticipated summit could have far-reaching consequences for India, as the United States has warned of imposing additional tariffs if the talks fail.
US Treasury Secretary Scott Bessent issued a stern warning, stating that if the Trump-Putin negotiations do not yield positive results, India could face punitive measures, including increased tariffs. In an interview with Bloomberg TV on Wednesday, Bessent remarked, “We have already imposed secondary tariffs on India for purchasing Russian oil. If the outcome of the talks is not favorable, punitive measures or tariffs could increase further.”
Earlier this month, President Trump imposed an additional 25% tariff on India for importing oil and weapons from Russia, bringing the total US tariff on Indian goods to 50%. This escalation follows an existing 25% tariff aimed at addressing the $45 billion trade deficit between the US and India.
The US has been actively mediating efforts to broker a ceasefire in the Russia-Ukraine war. On Wednesday, Trump warned that Moscow would face “severe consequences” if it fails to agree to a peace deal. The upcoming meeting in Anchorage on Friday is expected to focus on ending the Ukraine conflict.
Bessent criticized European nations for merely offering commentary on the talks while urging them to join the US in imposing secondary sanctions. “President Trump is meeting with Putin, while Europeans are sitting on the sidelines, dictating what should be done. They should join us in these sanctions and be prepared to impose secondary tariffs,” he said.
According to the BBC, India’s significant increase in importing cheap Russian crude oil since the Ukraine war began has strained Delhi-Washington relations and disrupted ongoing trade negotiations. In 2021, Russian oil accounted for just 3% of India’s total oil imports, but by 2024, this figure has surged to 35-40%. India has justified its actions, stating that as a major energy-importing nation, it has no choice but to purchase the most cost-effective oil to protect its population from rising costs.
In a separate interview with Fox Business on Tuesday, Bessent described India’s stance in trade negotiations as “somewhat inflexible.” President Trump has repeatedly labeled India a “tariff abuser” and expressed his intent to reduce the trade deficit with Asia’s third-largest economy.
The Delhi-Washington trade talks, ongoing for several months, are set to resume on August 25 when US negotiators arrive in Delhi. However, experts suggest that India’s reluctance to lower tariffs on agricultural and dairy products remains a significant obstacle.
The new 50% tariff on India, set to take effect on August 27, has been described by experts as tantamount to a trade embargo. This could make India the most heavily taxed US trading partner in Asia, potentially delivering a severe blow to export-oriented industries like textiles and jewelry, and reducing India’s economic growth by up to half a percentage point.
India has called the additional tariffs “unfair, unreasonable, and baseless,” arguing that the US and the EU encouraged India to buy Russian oil to stabilize global energy markets during the Ukraine crisis, despite sanctions on Russian products.
