New Delhi: The current tensions between the United States and India over trade have reached a critical juncture, marked by open frustration from top US officials and the imposition of substantial tariffs on Indian exports.
US Treasury Secretary Scott Bessent publicly criticised India for what he termed “slow-rolling” the ongoing talks for a Free Trade Agreement (FTA), expressing that “the whole trade team has been frustrated with them.”
These remarks came immediately after US President Donald Trump announced a sweeping 25% tariff on all Indian goods, effective August 1, 2025, and an additional, yet unspecified, penalty targeting India’s continued purchase of Russian oil and military equipment.
Bessent’s comments specifically called out India’s significant role in global energy markets as a “large buyer of sanctioned Russian oil,” which is subsequently refined and resold, stating bluntly that “they have not been a great global actor.”
He emphasised longstanding US grievances regarding high Indian tariffs, trade imbalances, and what the Trump administration sees as India’s lack of alignment with US national and economic security interests.
President Trump, addressing the press in Washington, reinforced his demand that India significantly lower its tariffs, labelling India as “one of the highest tariff nations in the world,” with some rates cited as exceeding 100-175%.
Trump put the tariff onus squarely on India’s negotiating stance, especially regarding access to its agricultural and dairy markets, and pointed to India’s ongoing membership in the BRICS bloc, which he described as “Anti-United States” and an attack on the US dollar.
The timeline for these developments began in April 2025, when Trump signed an executive order mandating reciprocal tariffs of 10-50% against various countries, including India. Initially, a 10% baseline tariff was imposed, with a 26% total tariff announced for India, but deadlines were extended during negotiations.
Following protracted talks, the full 25% tariff rate was fixed for August 1, 2025. The White House emphasised that this decision was driven by the US trade deficit with India, India’s protectionist policies, and their perceived insufficient progress in bilateral negotiations.
