The U.S. is warning that tariffs on India could rise further if Friday’s high-stakes Trump-Putin summit in Alaska fails to produce progress toward ending the war in Ukraine. Treasury Secretary Scott Bessent told Bloomberg TV that Washington may increase secondary tariffs on India over its continued imports of Russian oil, saying, “If things don’t go well, then sanctions or secondary tariffs could go up.”
Earlier this month, President Donald Trump imposed a 25 per cent penalty on India in addition to existing 25 per cent tariffs for buying oil and weapons from Russia — part of a broader push to pressure Moscow and narrow the U.S.’s $45 billion trade deficit with India. The Biden administration has long sought European support for tougher secondary sanctions, but Bessent said allies “need to be willing to put on these sanctions” as well.
Russian oil accounted for 35–40 per cent of India’s imports in 2024, up sharply from 3 per cent in 2021. Delhi argues it must buy the cheapest crude available to protect millions from high energy costs, but the surge in Russian purchases has strained U.S.-India relations and disrupted trade talks. Negotiations are set to resume when U.S. negotiators arrive in India on August 25, but disputes over agricultural and dairy tariffs remain a key sticking point.
If Trump follows through on raising tariffs to 50 per cent on August 27, India would become the most heavily taxed U.S. trading partner in Asia. Analysts warn such a move would hit export-focused industries like textiles and jewellery, potentially cutting India’s GDP growth by up to 0.5 per cent.