U.S. Threatens Further Tariffs on India if Trump–Putin Talks Falter

The U.S. government has issued a stern warning to India: further increases in secondary tariffs are on the table should the upcoming peace discussions between President Donald Trump and President Vladimir Putin in Anchorage fail to yield results.

Treasury Secretary Scott Bessent emphasized that the Trump administration has already imposed steep tariffs on Indian imports that is totaling 50% that include a 25% base tariff and another 25% penalty targeting India's continued procurement of Russian oil and weaponry. He warned that these measures may escalate if developments during the summit do not align with U.S. objectives.

The tariffs are part of a broader U.S. strategy to exert economic pressure amid the Ukraine conflict, with Washington accusing New Delhi of indirectly supporting Moscow through its energy purchases. India has defended its stance, citing its duty to secure affordable energy for its population and labeling the tariffs as unfair and unreasonable.

Economic tensions are mounting: India’s merchandise trade deficit hit an eight-month high of $27.35 billion in July, driven by rising imports. Although exports to the U.S. increased during April–July, the looming tariff hike slated to rise further by late August that threatens to disrupt key sectors like textiles, jewelry, and manufacturing.

Treasury Secretary Bessent has also challenged Europe to join the sanctions push, arguing that a collective approach is essential to influence Russia. Meanwhile, analysts warn that the fallout from these escalating trade tensions could derail long-standing strategic cooperation between the U.S. and India, putting defense partnerships, investments, and cooperation in the Quad at risk.

Sources:

Economic Times, Reuters, The Washington Post, BBC News