Additional Tariffs On India If Trump-Putin Talks Fail? US Treasury Secretary Drops Yet Another Tariff Bomb

The United States has warned that tariffs on Indian goods could be raised further if President Donald Trump’s upcoming meeting with Russian President Vladimir Putin in Alaska fails to ease tensions over energy trade.

"We've put secondary tariffs on Indians for buying Russian oil. And I could see, If things don't go well, then sanctions or secondary tariffs could go up," Bessent said in an interview to Bloomberg TV on Wednesday.

At present, Indian exports face a combined 50% duty — a 25% “reciprocal” tariff and an additional 25% penalty linked to India’s continued imports of Russian crude. Washington has hinted that this could climb higher if talks in Alaska yield no progress.

Earlier, New Delhi has called the tariff hikes “unjustified” and warned they could hurt its $87 billion trade relationship with the U.S. Exporters, especially in electronics, are already reporting order cancellations. 

Tensions over trade between Washington and New Delhi have been simmering for months. The latest tariff threat stems from India’s decision to maintain — and even expand — its purchase of discounted Russian crude since the start of the Ukraine conflict. The US has repeatedly signalled that such imports undermine Western sanctions on Moscow.

Also Read: Govt Steps Up Engagement With Exporters As US Tariffs On India Set To Hit 50% | Republic World

Earlier this year, the Trump administration reinstated high duties on several Indian export categories, citing what it called “market access imbalances” and “strategic concerns.” That came on top of secondary sanctions aimed at countries continuing significant energy trade with Russia.

While India has argued that its oil purchases are driven by economic necessity and energy security, the White House has framed them as a “geopolitical challenge”.

Trade talks between the two countries have been stalled since late 2024, when disagreements over agricultural imports and technology transfer spilled into the public domain. Washington’s latest warning comes just as both sides were exploring a limited trade package to stabilise relations.

The Alaska meeting between Trump and Putin now looms large in this backdrop — with the potential to either cool tempers or push U.S.–India trade tensions into a new, more confrontational phase.