US Signals Potential Tariff Hikes on Russian Oil for India, Contingent on Trump-Putin Talks

The United States, through Treasury Secretary Scott Bessent, has cautioned India regarding the potential for increased secondary tariffs on its trade of Russian oil. The decision, however, hinges significantly on the upcoming meeting between US President Donald Trump and Russian President Vladimir Putin, scheduled to take place in Alaska on Friday. Bessent, during an interview with Bloomberg, indicated that the existing sanctions or tariffs could be escalated if the discussions yield unfavorable results. The US has already imposed secondary tariffs on India for its purchases of Russian oil. Earlier, on August 12th, Bessent characterized India’s approach to trade negotiations as “a bit recalcitrant,” which followed President Trump’s announcement of an additional 25% tariff, primarily due to India’s oil acquisitions from Russia. Furthermore, speaking on Fox Business Network’s “Kudlow,” Bessent pointed out that several substantial trade agreements remain incomplete, including those with Switzerland and India, while expressing optimism about the possibility of finalizing tariff negotiations by October. The US Treasury Secretary highlighted that considerable trade deals remain unfinalized, with Switzerland and India still under negotiation.