The United States has raised tariffs on Indian goods to 50 per cent, increasing tensions between the two countries. Despite the dispute, US Treasury Secretary Scott Bessent believes that India and the US will eventually work through their differences.
In an interview with Fox Business, Bessent said the relationship is “complicated.” He pointed to India’s slow progress in trade talks and its large imports of Russian oil as major issues. “I thought we would have a deal in May or June. Instead, the talks dragged on,” he explained.
India currently buys nearly 40% of its oil from Russia, taking advantage of discounts since the Ukraine war. Washington views this as a problem and has responded with steep tariffs. Trump earlier announced that tariffs would be doubled to pressure India to reduce its Russian imports.
India, however, has rejected the US criticism. Officials said that buying Russian oil is an economic choice, not a political one, and stressed that the country will always seek the best deal for its energy needs. They also reminded Washington that the US once encouraged India to buy Russian crude to help keep global oil prices stable.
Another sticking point is trade. The US wants greater access to India’s farm and auto markets, but New Delhi has resisted. These differences have stalled a bilateral trade agreement that both sides once hoped to finish this year.
Even so, Bessent remains confident about the long-term future. “India is the world’s largest democracy, and the US is the world’s largest economy. At the end of the day, we will come together,” he said.
India’s Commerce Ministry also said communication with the US is still open, and talks may resume later. But for now, tariffs and Russian oil remain at the center of the dispute.
