US Threatens India With More Sanctions, Secondary Tariffs If Trump–Putin Alaska Talks Collapse

Washington: US Treasury Secretary Scott Bessent told Bloomberg TV on Wednesday, August 13, that the Trump administration was prepared to escalate measures against India depending on the outcome of Friday’s meeting.

“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.

Tariffs Already at 50%

In recent weeks, the US has slapped a 25% penalty on Indian imports and an additional 25 per cent levy on purchases of oil and weapons from Russia, bringing the total tariff burden to 50 per cent. The US accused India of indirectly funding Moscow’s war in Ukraine through its continued imports of Russian crude.

India has pushed back, calling the measures “unfair, unjustified, and unreasonable” and insisting its Russian oil imports are a matter of national energy security. The dispute comes at a sensitive time for bilateral ties, with trade negotiations between the two countries already on hold after breaking down earlier this month.

'A Bit Uncooperative' In Trade Talks

In an interview with Fox News, Bessent described India as “a bit recalcitrant” in recent trade discussions. Talks were suspended after Trump linked the impasse to India’s defence and energy dealings with Russia, alongside unspecified “other concerns”.

The Alaska summit is now being seen as a critical juncture. A diplomatic breakthrough between Trump and Putin could cool Washington’s stance on India, while a collapse in talks risks triggering what officials describe as “secondary sanctions”, penalties aimed at punishing third countries that maintain business ties with targeted nations.

Published on: Thursday, August 14, 2025, 03:10 PM IST