‘Tariffs on India could go up if Trump-Putin talks fails’

Last week, Trump imposed tariffs totalling 50 per cent on India, including 25 per cent for Delhi’s purchases of Russian oil that will come into effect from August 27.

“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 said in an interview with Bloomberg on Wednesday.

When asked about China, the main buyer of Russian crude, Bessent said he is “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.”

On whether sanctions can go up or loosened, Bessent said, “Sanctions can go up, they 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 added that even as Trump is meeting with Putin, the Europeans “need to join us” and need to be willing to “put on these secondary sanctions.”

Bessent recalled that at the G7 meeting in Canada this year, when he asked the leaders at the table whether they were willing to put a 200 per cent secondary tariff on China. “And you know what, everybody wanted to see what kind of shoes they were wearing.”

He added that Trump is committed to ending the bloodshed in the Ukraine war. “It’s put up or shut up time. The President is creating his own leverage. We need the Europeans to come in and help create more leverage,” Bessent said.

Responding to the tariffs, the Ministry of External Affairs has said that the targeting of India is unjustified and unreasonable. “Like any major economy, India will take all necessary measures to safeguard its national interests and economic security,” it said.