US Weighs New Tariffs on India Despite Modi-Trump Ties Over Russia

US Treasury Secretary Scott Bessent is calling for increased economic pressure on nations purchasing Russian oil. This push directly targets India, a major buyer, despite recent warming ties between Washington and New Delhi. The proposal aims to collapse the Russian economy and force President Vladimir Putin to negotiate peace with Ukraine.

Bessent outlined this strategy in a recent interview with NBC News. He argued that secondary tariffs are essential to cripple Russia’s financial resources.

Economic Collapse Seen as Path to Peace

Secretary Bessent framed the conflict as an economic race. He believes the Russian economy must break before the Ukrainian military does. According to his statement, imposing more sanctions and tariffs on Russian oil buyers is the key.

This economic pressure could lead to a full collapse. Such a scenario would compel Putin to come to the negotiating table. The US is prepared to act but insists European partners must follow.

Strained Relations Despite Diplomatic Thaw

This new call for tariffs creates fresh tension. It comes just after a public display of friendship between President Donald Trump and PM Narendra Modi. Their mutual appreciation had signaled a potential thaw in recent trade disputes.

India has consistently defended its oil purchases from Russia. Officials argue they are acting in their sovereign national interest. The country has previously questioned the logic of existing US penal tariffs.

The proposed measures represent a significant escalation. They highlight the ongoing complexity of global alliances amid the Ukraine war. The ultimate decision now rests on transatlantic coordination and diplomatic resolve.

The push for stricter sanctions underscores the US’s commitment to isolating Russia, even if it strains relationships with other major global partners like India.

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What are secondary tariffs?

Secondary tariffs are taxes imposed on one country for trading with a sanctioned nation. In this case, the US would levy them on India for buying Russian oil. The goal is to discourage all trade that benefits Russia.

How has India responded to previous US tariffs?

India has strongly objected to the tariffs. The government argues that its energy purchases are a matter of national sovereignty and economic necessity. It has questioned the fairness of the US penalties.

What was the recent “thaw” in US-India relations?

President Trump and PM Narendra Modi recently highlighted their strong personal rapport and mutual respect. This public diplomacy suggested a potential easing of trade tensions between the two nations before this new development.

Why does the US need Europe to agree?

For maximum impact, sanctions need to be broad and unified. If only the US acts, Russia and its partners can find alternative financial and trade routes. A coordinated effort with Europe makes the economic pressure far more potent.

What is the current status of existing US tariffs on India?

A US circuit court has previously held the tariffs illegal, pending an appeal. However, Treasury Secretary Bessent expressed confidence that the administration would ultimately win its case at the Supreme Court.

Trusted Sources: NBC News, Reuters, Associated Press.