US Treasury warns: India could face higher tariffs if Trump-Putin talks collapse

US Treasury Secretary Scott Bessent has warned that the new US tariffs on India could be raised further if Friday's meeting between President Donald Trump and Russian President Vladimir Putin in Alaska does not yield progress. 

Trump has slapped tariffs totalling 50% on Indian imports, including an additional 25% duty on New Delhi's purchases of Russian oil, due to take effect on 27 August. The move has already drawn sharp protests from New Delhi, which has called the measures "unjustified and unreasonable."

"I think everyone has been frustrated with President Putin. We expected that he would come to the table in a more fulsome way. It looks like he may be ready to negotiate. And we put secondary tariffs on the Indians for buying Russian oil. I could see, if things don't go well, then sanctions or secondary tariffs could go up," Bessent told Bloomberg on Wednesday.

When asked about China, the largest buyer of Russian crude, Bessent declined to commit to specifics, saying: "I'm not going to get ahead of the President, but the President is the best at creating leverage for himself, and he will make it clear to President Putin that all options are on the table."

The secretary said sanctions can go up, or can be loosened. "They can have a definitive life. They can go on indefinitely. You know, there's this Russian shadow fleet of ships around the world that I think we could crack down on." He pointed to what he called Russia's "shadow fleet of ships around the world" as a target for potential crackdowns.

Even as Trump prepares for talks with Putin, Bessent pressed European allies to join Washington's economic pressure campaign. "We need the Europeans to come in and help create more leverage," he said, adding that at this year's G7 summit in Canada, he asked leaders if they were willing to put a 200% secondary tariff on China - but "everybody wanted to see what kind of shoes they were wearing."

Bessent said Trump was committed to ending the war in Ukraine. "It’s put up or shut up time. The President is creating his own leverage," he remarked.

The Ministry of External Affairs has said it will take "all necessary measures" to safeguard its economic security in response to the tariff decision. 

(With inputs from PTI)