U.S. President Donald Trump’s top economic adviser has warned India that Washington will not soften its tariff stance unless New Delhi makes concessions on trade and curbs its purchase of Russian crude oil.
Kevin Hassett, Director of the National Economic Council, described negotiations with India as “complicated” and accused the country of resisting U.S. demands to open its markets. “If the Indians don’t budge, I don’t think President Trump will,” Hassett said, as the U.S. doubled tariffs on Indian imports to 50 per cent, the highest rate for any nation except Brazil. That figure includes an additional 25 per cent duty linked directly to India’s continued imports of Russian oil.
Hassett framed the talks as a marathon requiring patience and long-term vision, saying trade deals inevitably involve “ebbs and flows” before reaching resolution. His remarks echoed Treasury Secretary Scott Bessent, who recently criticized New Delhi as “uncooperative” during negotiations, despite earlier hopes that a deal could be concluded as early as spring.
India, however, has signalled it is prepared to stand firm. Prime Minister Narendra Modi has vowed not to compromise on key domestic priorities, particularly protecting the interests of Indian farmers.
Officials in New Delhi estimate the new duties will hit $48.2 billion worth of exports to the U.S. While the immediate impact may be limited, they warn the longer-term ripple effects could undermine job creation and slow economic growth, making certain shipments commercially unviable.
Despite the current deadlock, both sides continue to stress the importance of the relationship between the world’s largest democracy and the world’s largest economy.