The United States has warned of a potential increase in secondary tariffs on India if the upcoming peace talks between US President Donald Trump and Russian President Vladimir Putin fail to deliver a breakthrough on the Ukraine conflict.
US Treasury Secretary Scott Bessent told Bloomberg TV on Wednesday, “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.”
Earlier this month, the Trump administration imposed a 25% penalty on India in addition to an existing 25% tariff on purchases of Russian oil and weapons. These measures are part of Washington’s strategy to pressure Moscow into agreeing to a ceasefire. Trump has warned of “severe consequences” if Russia rejects a peace deal.
The high-stakes Trump-Putin meeting is set for Friday in Anchorage, Alaska, with European allies pushing for stronger coordinated sanctions. Bessent criticised Europe for “carping from the wings” instead of fully joining US efforts.
India’s imports of Russian crude have surged from 3% of total imports in 2021 to nearly 40% in 2024, with New Delhi defending the purchases as essential for securing affordable energy for millions of citizens.
Trade tensions between India and the US have been rising, with Trump calling India a “tariff abuser” and seeking to reduce the $45 billion trade deficit. Negotiations have stalled over disagreements on agricultural and dairy tariffs.
A new 50% tariff rate on India, set to take effect on August 27, 2025, would make it the most heavily taxed US trading partner in Asia. Economists warn the move could hit India’s export-driven industries such as textiles and jewellery, potentially cutting GDP growth by up to 0.5%.
