A huddle by the trio of world leaders has rattled the US administration

U.S. Treasury Secretary Scott Bessent has warned that if the U.S. and European Union expand secondary sanctions on countries buying Russian oil, Russia’s economy could face “full collapse”—a move he claims would force President Vladimir Putin to the negotiation table.

Bessent’s remarks follow a recent call between President Trump, Vice President J.D. Vance, and European Commission President Ursula von der Leyen focused on increasing economic pressure on Moscow.

The Trump administration is urging a united front with Europe, specifically targeting third-party buyers of Russian oil with punitive sanctions and tariffs.

Amid deteriorating ties, Washington implemented an additional 25% tariff on India's imports of Russian crude effective August 27, bringing the total duty up to 50%—twice the previous rate.

President Trump, defending the measure, said he was “very disappointed” that India continues to source large volumes of Russian oil, and emphasised the scale of the action: “We put a very big tariff on India, 50 percent tariff.”

Several Trump administration officials, including Bessent and trade advisor Peter Navarro, have accused India of indirectly financing Russia’s war in Ukraine through its energy purchases.

India has categorically rejected the tariffs as “unjustified and unreasonable,” insisting that its energy decisions are governed by national priorities and market realities, not geopolitics. New Delhi contends that both the U.S. and EU continue significant trade with Russia, while disproportionately penalising India.

The Indian government maintains it will defend its interests and seeks to highlight the West’s perceived double standards regarding Russian trade.

These developments mark a sharp escalation in U.S.–India trade tensions, threatening a relationship long considered vital across strategic and economic domains. The doubling of tariffs has not deterred India, which plans to continue buying Russian oil citing competitive prices and energy security. 

Meanwhile, the U.S. signals readiness for further punitive actions against India and other major buyers, suggesting an ongoing recalibration of global alliances under pressure from the prolonged Ukraine conflict.

As Washington rallies European partners for expanded secondary sanctions, New Delhi faces rising costs and a test of its stated strategic autonomy. India’s robust protests and its continued procurement of Russian energy set the stage for further confrontations and possible countermeasures on both sides.

Agencies