The US will impose heavier tariffs on India! US Finance Minister gave a warning, said- 'If Trump-Putin talks fail, then...'

Trump Tariff on India: America has warned India that secondary tariffs may increase on buying oil from Russia. The results of the Trump-Putin meeting will affect this.

Washington has warned India that secondary tariffs could increase if it buys oil from Russia. US Treasury Secretary Scott Bessant said the decision will depend on the outcome of the meeting between President Donald Trump and Russian President Vladimir Putin in Alaska on Friday.

Russia-Ukraine war and US mediation

"We have imposed secondary tariffs on Indians for buying oil from Russia. If things don't go well, sanctions or secondary tariffs could increase," Besant told Bloomberg TV. Earlier this month, Trump imposed an additional 25% tariff on India for buying oil and weapons from Russia. The US is trying to mediate an end to the conflict between Russia and Ukraine and Trump warned on Wednesday that there would be "serious consequences" if Moscow did not agree to a peace deal.

 

 

Trump-Putin meeting and European pressure

The Treasury Secretary said, "President Trump is meeting with President Putin and European countries are telling him what he should do. Europe should also join these sanctions and be ready to impose secondary sanctions." This meeting to be held in Anchorage on Friday will focus on measures to end the Russia-Ukraine war.

Impact on India-US trade relations

The rise in cheap Russian crude imports by Delhi after the Ukraine war has strained India-US relations and disrupted ongoing trade talks with Washington. The share of Russian oil in India's oil imports is set to reach 35% to 40% in 2024 from a mere 3% in 2021.

India defended its Russian oil imports, saying that as a major energy importer it is necessary to buy the cheapest crude so that Indians are not burdened by rising prices.

Trade talks and tariff impact

Besant told Fox Business on Tuesday that India has been "a little stubborn" in trade talks. Trump says his tariffs are part of a plan to strengthen the US economy and make global trade more fair. He has repeatedly called India a tariff abuser and wants to reduce the $45 billion trade deficit.

Commercial talks have been going on for months and the US negotiating team is expected to arrive in India on August 25. Experts say India's refusal to reduce tariffs on agricultural and dairy products is the biggest hurdle in the talks.

New 50% tariff rate to come into effect from August 27

Trump's new 50% tariff rate on India is set to come into effect from August 27, which some experts say is akin to a ban on trade between the two countries. This will make India the most taxed US trading partner in Asia and is expected to severely impact export-intensive industries such as textiles and jewellery, and could reduce India's growth rate by up to half a percentage point.