Amid tariff fight, US treasury secretary says India, Washington will ‘come together’ in the end
But Bessent also admitted that the much-anticipated trade deal remains elusive. “The Indians came in early after Liberation Day to start negotiating on tariffs and we still don't have a deal,” he said.
- Aug 28, 2025,
- Updated Aug 28, 2025 7:15 AM IST
As the US slapped a fresh 25% tariff penalty on India over Russian oil and defense deals, Treasury Secretary Scott Bessent insisted that the strategic partnership between Washington and New Delhi remains strong—despite stalled trade talks and rising political tensions.
In an interview with Fox Business on Wednesday, Bessent voiced optimism: “India's the world’s largest democracy, the US is the world’s largest economy. I think at the end of the day we will come together.”
But Bessent also admitted that the much-anticipated trade deal remains elusive. “The Indians came in early after Liberation Day to start negotiating on tariffs and we still don't have a deal,” he said. He accused India of taking a “performative” stance, despite earlier expectations of an agreement by May or June.
He criticized India's continued purchase of discounted Russian crude, stating bluntly: “There's also that aspect of Russian crude purchases which they have been profiteering on.”
On leadership ties, Bessent pointed to strong personal chemistry between President Donald Trump and Prime Minister Narendra Modi, calling it a “very good rapport at the top level,” while stressing that “it's not just about Russian oil”—pointing to broader trade imbalances.
He reaffirmed Trump’s position on America’s trade deficit with India: “The US is the deficit country. When there is a schism in trade relations, the deficit country's at an advantage. It's the surplus country that should worry.”
Asked about India’s growing push for rupee-based trade settlements, Bessent was dismissive: “The rupee becoming the reserve currency isn’t one of them,” he said, citing its record-low performance against the dollar.
As the US slapped a fresh 25% tariff penalty on India over Russian oil and defense deals, Treasury Secretary Scott Bessent insisted that the strategic partnership between Washington and New Delhi remains strong—despite stalled trade talks and rising political tensions.
In an interview with Fox Business on Wednesday, Bessent voiced optimism: “India's the world’s largest democracy, the US is the world’s largest economy. I think at the end of the day we will come together.”
But Bessent also admitted that the much-anticipated trade deal remains elusive. “The Indians came in early after Liberation Day to start negotiating on tariffs and we still don't have a deal,” he said. He accused India of taking a “performative” stance, despite earlier expectations of an agreement by May or June.
He criticized India's continued purchase of discounted Russian crude, stating bluntly: “There's also that aspect of Russian crude purchases which they have been profiteering on.”
On leadership ties, Bessent pointed to strong personal chemistry between President Donald Trump and Prime Minister Narendra Modi, calling it a “very good rapport at the top level,” while stressing that “it's not just about Russian oil”—pointing to broader trade imbalances.
He reaffirmed Trump’s position on America’s trade deficit with India: “The US is the deficit country. When there is a schism in trade relations, the deficit country's at an advantage. It's the surplus country that should worry.”
Asked about India’s growing push for rupee-based trade settlements, Bessent was dismissive: “The rupee becoming the reserve currency isn’t one of them,” he said, citing its record-low performance against the dollar.