Trump-Putin Summit Holds Key: US Threatens India With More Tariffs Over Russian Oil | India News
If the upcoming peace talks between US President Donald Trump and Russian President Vladimir Putin could not give a positive result, the United States warned the Potential increases in secondary tariffs. US Treasury Secretary Scott Bessent gave his decision directly to the high betting summit in Alaska and warned on Wednesday.
Tariffs connected to Trump-Putin Summit
In an interview with Bloomberg TV, Bessent said, “We have put secondary tariffs to buy Russian oil to the Indians. And if things don’t go well, sanctions or secondary tariffs may rise.” This comes after President Trump’s 25% penalty to India, in addition to 25% of tariffs for the purchase of oil and weapons from Russia, especially in Russia.
In the ongoing conflict between the US, Russia and Ukraine, the ceasefire is actively mediating. On Wednesday, if President Trump did not accept a peace agreement during the Moscow Anchorage Summit, he issued a sharp warning about “severe results”.
Bessi emphasized the need for European allies to participate in sanctions and said, “President Trump meets President Putin and Europeans on the wings about how to do it and what to do. Europeans need to join us in these sanctions. Europeans need to be willing to put these secondary sanctions.”
Russian oil imports resistant bonds
Since the beginning of India’s Ukrainian war, cheap Russian crude oil imports have significantly pushed India-US relations and has made more complexity of ongoing trade talks between Delhi and Washington. Russian oil now accounts for 35% to 40% of India’s oil imports in 2024, and in 2021, only 3% is dramatic.
As a large energy importer, Delhi has constantly defended Russian oil purchases, arguing that it is compulsory to buy the cheapest crude oil available to protect millions of poor citizens from increasing costs.
Trade negotiations under pressure
During an interview with Fox Business, Bessent’s latest comments follow India’s previous characterization as “Bit Insatrant” on trade negotiations. President Trump sees its tariffs as part of a wider strategy to increase the US economy and establish more fair global trade practices. He frequently labeled India as a “exploiting tariff” and aims to reduce a 45 billion dollar trade deficit with Asia’s third largest economy.
Trade negotiations between Delhi and Washington have been going on for several months, and US negotiators are expected to come to India on August 25th. However, experts point to India’s reluctance to reduce their duties on agriculture and dairy products as a major point of adhesion in discussions.
In addition to the pressure, Trump’s 50% tariff rate in India is scheduled to enter into force on 27 August. Some experts argue that this new rate resembles a trade embargo between the two countries. If implemented, it will make India the most severe -taxed US trade partner in Asia, and will potentially prevent India’s export -oriented industries such as textiles and jewels in a heavier way, and even drag India’s economic growth up to half percent.
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