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.
Bessent told Bloomberg TV that sanctions on India, previously imposed for purchasing Russian oil, could increase if negotiations do not go as planned.
Earlier this month, Trump imposed a 25% penalty on India on top of existing 25% tariffs for its purchases of Russian oil and weapons.
The US has been pushing for a ceasefire between Russia and Ukraine, and Trump warned on Wednesday of “severe consequences” if Moscow does not agree to a peace deal. The leaders are scheduled to meet in Anchorage to discuss steps to end the conflict.
Bessent added that European countries should support US sanctions and be prepared to implement secondary measures alongside Washington.
India’s growing imports of Russian crude since the Ukraine war have strained relations with the US and complicated ongoing trade talks. Russian oil accounted for 35–40% of India’s imports in 2024, up from 3% in 2021. Delhi has defended the purchases, citing the need to secure affordable energy for millions of low-income citizens.
Trade negotiations between India and the US have been ongoing for months, with discussions set to resume when American negotiators arrive in India on August 25. Experts say India’s reluctance to lower duties on agriculture and dairy products has been a major hurdle.
Trump’s new 50% tariff on India will take effect on August 27, making India the most heavily taxed US trading partner in Asia. Analysts warn it could hit industries such as textiles and jewellery and reduce India’s economic growth by up to 0.5%.