The United States is turning up the heat on India, issuing a stark warning about potential new tariffs if upcoming peace talks between President Donald Trump and Vladimir Putin don’t pan out. The caution came late Wednesday, August 13, 2025, from Treasury Secretary Scott Bessent, who flagged the possibility during a flurry of diplomatic moves. With the Trump-Putin summit set for Friday in Alaska, the threat looms large, tying India’s trade fate to the outcome of a high stakes effort to end the war in Ukraine. The news hit Washington and New Delhi like a thunderclap, setting the stage for an anxious wait.
Bessent laid it out plainly in a Bloomberg TV interview, saying the U.S. could hike secondary tariffs on India if the Alaska meeting falls flat. The backdrop? India’s purchase of Russian oil, a sore point for the Trump administration as it pushes Moscow to back off in Ukraine. Washington already slapped a 25% tariff on India earlier this month, adding to an existing 25% levy, bringing the total to 50%. Now, Bessent’s hint at more penalties hinges on whether Putin agrees to a ceasefire. That said, the Treasury chief didn’t spell out numbers, leaving traders and policymakers guessing about the next move. For now, the focus is squarely on Friday’s talks.
The timing couldn’t be tighter. Trump and Putin are slated to meet at Joint Base Elmendorf-Richardson, a remote spot chosen for its neutral ground feel. The U.S. has been pressing for a resolution, with Trump warning of “severe consequences” if Russia digs in. Bessent echoed that urgency, urging European allies to join the sanctions push against Russia’s trade partners. In turn, India finds itself in the crosshairs, its energy deals with Moscow under scrutiny. The warning comes as trade talks between Washington and New Delhi teeter, with a U.S. delegation due in India on August 25 unless this latest twist derails the schedule.
Here’s the rundown:
- The U.S. may add tariffs on India if Trump-Putin talks fail.
- The warning was issued on August 13, 2025.
- The summit is scheduled for Friday in Alaska.
India’s role in this stems from its heavy reliance on Russian crude, which jumped to 35-40% of its oil imports in 2024 from just 3% in 2021. Delhi defends the move as a necessity to keep energy costs down for its 1.4 billion people, a stance it’s held firm on despite U.S. pressure. At the same time, the Trump administration sees it as fueling Russia’s war machine, a charge India rejects. Bessent’s comments follow Trump’s earlier jab at India as a “tariff abuser,” a label that’s strained ties further. The Treasury chief also called India “recalcitrant” in trade talks, a remark that landed hard in New Delhi.
The tariff threat carries weight. The current 50% rate, set to fully kick in by August 27, already risks slashing India’s exports textiles, jewelry, and more by billions. A hike could deepen that hit, potentially dragging growth down by half a percent, according to some estimates. India’s External Affairs Ministry fired back, calling the existing tariffs “unfair, unjustified, and unreasonable,” a stance Prime Minister Narendra Modi reinforced by prioritizing farmers over trade concessions. In a statement, Modi said India won’t bend, even if it costs economically. That resolve sets up a tense standoff as the Alaska summit nears.
The U.S. strategy seems clear: leverage India to pressure Putin. Trump’s team has been vocal about secondary sanctions, targeting countries that prop up Russia’s economy. Europe’s reluctance to match the U.S. tariff push has left India as a focal point, a move some see as a bargaining chip in the Ukraine talks. At the same time, India’s leadership is bracing for impact, with Modi set to chair a Cabinet meeting today to map out next steps. The U.S. delegation’s planned visit might still happen, but the mood has shifted, with both sides digging in. Moving forward, Friday’s outcome could reshape this trade tussle or escalate it further.
This update comes from early reports tracking the Treasury’s statements, a solid source for such developments. The story’s unfolding fast, with the Alaska summit just hours away. As Trump and Putin sit down, the world will watch, and India’s trade future hangs in the balance. For now, it’s a waiting game with high stakes on both sides of the globe.
