U.S. Blames India for Extra Trade Tariffs: Is New Delhi Being Targeted?

The US has blamed India for slow progress in trade talks, using it as one reason for keeping high tariffs on Indian goods. At the same time, another top US official accused India of being “intransigent,” meaning it refuses to change its position to allow easier access for American products in its market.

Kevin Hassett, director of the US National Economic Council, said President Donald Trump is unlikely to change his mind: “… if the Indians don’t budge, I don’t think President Trump will.” Speaking to reporters at the White House on Wednesday, Hassett said the 25% “penalty” tariff on India for buying Russian oil, on top of an earlier 25% tariff introduced three weeks ago, was meant to pressure Russia to stop the war in Ukraine.

Trade Tariffs on India to Pressurize Russia? US Official Thinks So

“Part of it has been tied to the pressure we’ve been trying to put on Russia to secure a peace deal and save millions of lives. And then there’s the Indian intransigence about opening their markets to our products,” Hassett said.

India, questioning the logic of the penalty, has insisted that certain sensitive sectors like agriculture, fisheries, and small industries must be protected in trade talks. An expert said that India has kept the door open for talks, which began formally in April but are currently stalled. Hassett added that negotiations always have “ebbs and flows.”

Lack of Urgency in Trade Talks Played a Part in Tariffs Imposition on India

Earlier, US Treasury Secretary Scott Bessent said the high tariffs were not only because of India’s Russian oil imports but also due to the slow pace of trade deal discussions. He expressed optimism that the two countries would eventually reach an agreement: “India is the world’s largest democracy. The US is the world’s largest economy. I think at the end of the day we will come together.”

White House Trade Adviser Peter Navarro went further, calling the Russia-Ukraine war “Modi’s war.” He claimed India’s discounted imports of Russian crude oil help sustain Moscow’s military campaign. When asked if he meant “Putin’s war,” Navarro insisted: “No, I mean Modi’s war, because the road to peace runs through New Delhi.” He said that India’s refining and resale of Russian oil at higher prices sends money back to Russia, allowing the war to continue.

Navarro suggested that the US could remove the 25% tariffs on Indian goods if India stops buying Russian oil. “India could get 25% off tomorrow if it stops buying Russian oil,” he said, while noting that India has shown no intention to do so.

Also Read: Trump’s 50% Tariffs: These Indian States Will Take The Hardest Hit