Washington, D.C. – Amid escalating trade disputes, U.S. Treasury Secretary Scott Bessent expressed confidence in the enduring partnership between the United States and India, despite recent tariff hikes targeting New Delhi’s imports. Speaking to Fox Business, Bessent highlighted the strong rapport between U.S. President Donald Trump and Indian Prime Minister Narendra Modi, describing the relationship as complex but promising. “India is the world’s largest democracy, and the U.S. is the world’s largest economy. I think at the end of the day, we will come together,” he said.
The U.S. recently imposed a 50% tariff on Indian goods, including a 25% penalty tied to India’s purchases of Russian oil and defense equipment, effective August 27, 2025. Bessent noted that the U.S. holds a trade advantage as the deficit country in this relationship, pointing out India’s high tariffs and significant trade surplus with the U.S. He dismissed concerns about India shifting to rupee-based trade, citing the Indian currency’s all-time low against the dollar.
India’s Ministry of External Affairs called the tariffs “unjustified and unreasonable,” vowing to protect national interests. The ministry emphasized that India’s Russian oil imports were partly encouraged by Western efforts to stabilize global energy markets. Meanwhile, trade negotiations remain stalled, with Bessent describing India’s approach as “performative.” He had earlier labeled India “a bit recalcitrant” in trade talks, prompting a sharp response from Congress MP Shashi Tharoor on X. Tharoor argued, “Far better to be recalcitrant, than to be tractable, submissive or acquiescent to injustice.”
Despite the tensions, Bessent remains optimistic, referencing the personal connection between Trump and Modi. However, reported that Modi declined four calls from Trump recently, signaling strain. No trade deal has been finalized, and earlier hopes for an agreement by mid-2025 have faded. Both nations continue to navigate this complex economic standoff, with global attention fixed on their next steps.
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