US Treasury Secretary calls India recalcitrant in trade talks as Trump threatens further tariffs
US Treasury Secretary Scott Bessent criticised India's stance in ongoing trade negotiations, labelling it "recalcitrant," amid escalating tensions. President Trump's threat of a 25% tariff increase on Indian imports, fueled by India's continued oil purchases from Russia, adds to the pressure.
US Treasury Secretary Scott Bessent has described India as "a bit recalcitrant" in ongoing trade negotiations with the United States, just days after President Donald Trump threatened an additional 25 per cent tariff on Indian imports.
The escalating trade tensions are fueled by India's continued oil purchases from Russia, a move that has drawn sharp criticism from the Trump administration.
The remarks from Bessent come as India and the United States are reportedly in the midst of crucial trade talks, with a looming August 27 deadline for the implementation of the remaining half of the tariffs threatened by President Trump.
Bessent, speaking to Reuters, highlighted that significant trade agreements are still pending with several nations, including Switzerland and India. He specifically singled out India, citing its unyielding stance in the current discussions.
In an interview with Fox Business Network's "Kudlow," Bessent expressed an "aspirational" goal of concluding these trade negotiations by the end of October. He indicated that the Trump administration is optimistic about reaching "substantial terms" with "all the substantial countries."
The existing trade dispute began with President Trump's threat of a 50 per cent tariff on Indian goods. Half of this tariff has already been imposed on August 7th, with the remaining portion set to take effect on August 27th. In response, India is reportedly assessing the impact of these tariffs in consultation with exporters and other stakeholders, while also exploring alternative trade partnerships.
The Union Finance Ministry has informed Parliament that approximately 55 per cent of the total value of India's merchandise exports to the US will be affected by these reciprocal tariffs. This was stated by Union Minister of State for Finance Pankaj Chaudhary in a written response to Lok Sabha MP Abhishek Banerjee.
"It is estimated that around 55 per cent of the total value of India’s merchandise exports to the US is subject to this reciprocal tariff,” Chaudhary said.
Despite the trade friction, India maintains that its relationship with the US is multifaceted, with trade representing only one aspect. Meanwhile, US President Donald Trump has pointed to India's position as Russia's "largest or second-largest oil buyer," asserting that his tariff actions have significantly impacted the Russian economy.
"They have tremendous potential in Russia to do well. They're not doing well. Their economy is not doing well right now because it's been very well disturbed by this," Trump said.