Updated 2 August 2025 at 20:22 IST
Trump Admin 'Frustrated' with India, Says It's ‘Not Great Global actor’
Meanwhile, India's Commerce Minister Piyush Goyal addressed the issue in Parliament, assuring that the government is closely assessing the potential impact of these tariffs
US Treasury Secretary Scott Bessent has sharply criticized India for allegedly "slow-rolling" trade negotiations, stating that the entire US trade team, including President Donald Trump, is "frustrated" with New Delhi's stance. Bessent said this in an interview with a channel and accused India of not being a "great global actor," specifically pointing to its significant and growing imports of Russian oil and the subsequent resale of refined products.
These strong remarks come on the heels of President Trump's announcement on Wednesday, July 30, 2025, imposing a 25% tariff on Indian goods, effective August 1. In a post on his Truth Social platform, Trump also declared an additional "penalty" linked to India's trade relationship with Russia, citing India's high tariffs and "strenuous and obnoxious non-monetary trade barriers."
According to the US administration, India's purchase of a "vast majority of their military equipment from Russia" and being "Russia's largest buyer of energy along with China," at a time when global efforts are focused on stopping the conflict in Ukraine, are "all things not good."
When questioned about the possibility of re-engaging in talks before the tariff deadline, Bessent firmly stated, "It will be up to India," indicating that Washington expects New Delhi to initiate the next steps.
Meanwhile, India's Commerce Minister Piyush Goyal addressed the issue in Parliament, assuring that the government is closely assessing the potential impact of these tariffs and will take all necessary measures to protect India’s national interest. Goyal emphasized India's rapid economic growth, highlighting its rise from one of the "Fragile Five" economies to among the world's top five, and soon to be the third largest.
India's crude oil imports from Russia have surged dramatically since the Ukraine conflict, jumping from a mere 0.2% before the war to an estimated 35-40% of its total purchases by mid-2025, making Russia India's largest oil supplier. Bilateral trade between India and Russia hit a record high of $68.7 billion in FY25, a nearly six-fold increase from pre-pandemic levels.
While some Indian state refiners have reportedly paused Russian oil purchases in the spot market, the Indian government has denied issuing any directives to halt these imports, maintaining that refiners are free to source crude as per their commercial decisions.
The US tariffs are set to impact various Indian export sectors, including electronic goods, marine products, readymade garments, gems and jewelry, and chemicals. However, some analyses suggest that over half of India's exports to the US may remain unaffected due to existing exemptions. Moreover, SBI Research indicates that the 25% tariff may ultimately have a more significant economic implication for the US than for India, potentially leading to reduced US GDP, increased inflation, and a weakened dollar.
Published By : Rajat Mishra
Published On: 2 August 2025 at 20:21 IST