‘If India doesn’t budge, Trump won’t’: US warns Delhi as tariffs bite, deal stalls

The Trump administration has hardened its stance on India, with top economic adviser Kevin Hassett warning that Washington will not back down unless New Delhi halts its purchase of discounted Russian oil—now at the center of a spiraling trade dispute. 

As 50% tariffs on Indian exports took effect Wednesday, Hassett declared, “If the Indians don’t budge, I don’t think President Trump will.”

Speaking to U.S. media, the National Economic Council Director said trade negotiations with India remain “complicated,” particularly as they overlap with U.S. efforts to pressure Russia into ending its war in Ukraine. “It’s integrated some with the problems that we’re trying to put extra pressure on Russia,” Hassett said, criticizing India’s resistance to opening its markets to U.S. goods.

The new 50% tariff—among the steepest imposed by the U.S. on any Asian nation—targets all Indian-origin goods. It follows Trump’s August announcement, in which he cited India’s rising imports of Russian oil and defense equipment as justification. Treasury Secretary Scott Bessent supported the move, stating the tariffs reflect both energy trade and stalled progress on a broader trade deal.

“I thought we’d have a deal in May or June,” Bessent said on Fox Business. “India could be one of the earliest deals, but they kind of tapped us along.” He dismissed concerns about India shifting to rupee-based trade: “The rupee is at an all-time low against the U.S. dollar.”

India’s Finance Ministry, in its July economic review, acknowledged the tariffs’ ripple effects, saying they pose significant challenges and heighten the urgency of resolving trade talks with Washington.

Despite five negotiation rounds, India has refused to fully open its agricultural and dairy markets—moves it fears could devastate millions of livelihoods. Prime Minister Narendra Modi has drawn a hard line: “For the farmers of my country…India stands ready today,” he said.