US Treasury Secretary Scott Busby has warned that additional tariffs could be imposed on India. He stated that the decision would depend on the outcome of US President Donald Trump’s meeting with Russian President Vladimir Putin on Friday.
Speaking to Bloomberg TV, the Treasury Secretary said, “We have already imposed additional tariffs on India due to its purchase of Russian oil. If the situation does not improve, further sanctions or tariffs may be applied.”
Trump and Putin are scheduled to meet in Alaska on Friday, with ending the Ukraine war expected to be a key topic.
Since the beginning of the Ukraine war, India’s increasing imports of cheap Russian oil have strained its relations with the United States, and recent trade negotiations have failed largely due to this issue. About 40% of India’s total oil imports are from Russia, up from just 3% in 2021.
India has defended its decision, stating that “considering the country’s energy needs, it imports the cheapest oil to protect its poor population from inflation.”
However, the US statement comes at a time when President Trump has repeatedly said that tariffs are part of his strategy to boost the American economy and make global trade fairer. Trump has accused India of misusing tariffs and is now attempting to reduce the $45 billion trade deficit with India.
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Negotiations between India and the US have been ongoing for several months, with US officials scheduled to visit Delhi for a new round of talks on August 25. Experts believe, however, that India’s insistence on not reducing duties on agricultural and dairy products remains a major obstacle to successful negotiations.
The new tariffs announced by Trump are set to take effect on August 27. Some analysts warn that these measures could almost halt trade between the two countries.
As a result of Trump’s decision, India has become the US trading partner in Asia with the highest tariffs, with the textile and jewelry sectors expected to be the most affected. Estimates suggest that if these tariffs are implemented, India’s economic growth could fall by even less than 1%.