The United States Treasury Secretary Scott Bessent has issued a warning that the Trump administration could impose additional secondary tariffs on India depending on the outcome of the scheduled meeting between President Donald Trump and Russian President Vladimir Putin in Anchorage, Alaska, on August 15, 2025.

This follows the Trump administration's recent imposition of a combined 50% tariff on Indian imports, which includes a baseline 25% tariff plus an additional 25% tariff specifically targeting India's purchases of Russian oil and weapons. The US alleges that India’s purchase of Russian crude oil indirectly funds Moscow's war in Ukraine.

Bessent indicated in interviews with Bloomberg TV and Fox News that the current secondary tariffs on India could rise if the Trump-Putin talks do not yield positive results, describing India as "a bit recalcitrant" in trade negotiations.

The US sees these tariffs as leverage to pressure Russia into ending the war in Ukraine. He also criticized European countries for their reluctance to join the US in imposing secondary sanctions on nations like India and called on them to "put on these secondary sanctions" to strengthen the leverage against Russia.

India, the world's top importer of seaborne Russian crude, has defended its oil imports as vital for national energy security and called the US tariffs "unfair, unjustified, and unreasonable." India has significantly increased its Russian oil imports since the Ukraine conflict began, citing the need to secure affordable energy for its population.

Trade talks between the US and India have already stalled, with India expected to hold firm on protecting its agriculture and dairy sectors, which remain major sticking points in bilateral negotiations.

The upcoming Trump-Putin summit aims to discuss ways to end the ongoing war in Ukraine, now in its fourth year. President Trump has described the meeting as a "feel-out" to test Putin’s willingness to negotiate a ceasefire and warned of "severe consequences" if Russia rejects a peace deal.

Trump has floated the controversial idea of "some swapping of territories" as part of a peace agreement, which Ukraine has firmly rejected, insisting no deal is possible without Kyiv's participation and that Ukrainian territory will not be ceded.

European officials have expressed concern that the direct talks between Trump and Putin, excluding Ukraine, might result in an agreement favouring Russian objectives, further complicating the international diplomatic landscape.

US negotiators are expected to visit India on August 25, just two days before the 50% tariff on Indian goods is set to take effect, possibly to resume negotiations. However, given the current stances, substantial progress on the contentious trade issues seems uncertain.

The US is leveraging tariffs and potential sanctions as tools to influence India’s Russian oil trade and to exert pressure on Russia via diplomatic and economic means, contingent heavily on the outcomes of the Trump-Putin summit and broader international cooperation, particularly from European allies.

Based On TNIE Report