US Treasury Secretary Bessent Addresses India Tariffs and Trade Deal

US Treasury Secretary Scott Bessent has indicated that the 50% tariff imposed on Indian imports by the Trump administration is not solely linked to India’s purchases of Russian crude oil. Instead, he emphasized that it reflects broader challenges in the economic relationship between the United States and India. In an exclusive interview with Fox Business, Bessent acknowledged the current strain in the bilateral trade ties but expressed optimism about future cooperation.

During the discussion, Bessent noted that negotiations toward a comprehensive trade agreement have been progressing slowly. He had anticipated that a deal might be finalized by May or June 2024, but now views the pace as “slow.” He remarked, “We still don’t have a deal. India’s approach has often been performative rather than substantive.”

Negotiations began shortly after what Bessent referred to as “Liberation Day,” but he indicated that Washington feels New Delhi has not engaged as expected. He raised specific concerns regarding India’s ongoing purchase of discounted Russian crude oil, which he stated has allowed Indian refiners to profit while complicating U.S. efforts to enforce sanctions on Moscow.

Bessent pointed out the need for a broader perspective on the tariff dispute, stating, “This is a complicated relationship, and it’s not just about Russian oil.” His remarks come amid a significant shift in U.S. trade policy, which has seen the imposition of high tariffs on various Indian exports.

Despite these tensions, Bessent highlighted the importance of the personal rapport between President Donald Trump and Prime Minister Narendra Modi. “There is strong rapport at the top level,” he said, suggesting that their relationship could help navigate the complexities that have hindered technical negotiations.

New Delhi has not yet retaliated with similar tariffs but continues to advocate for a reduction of U.S. duties on key sectors, including steel, textiles, and IT services. As the discussions unfold, both parties remain focused on finding common ground to enhance their economic partnership.

Bessent’s statements capture the delicate balance in U.S.-India relations, emphasizing the intricate web of trade, diplomacy, and geopolitical considerations that influence economic interactions between the two nations.