'If India doesn't budge, neither will Trump,' says US economic advisor

US economic advisor Kevin Hassett said India-US trade talks remain "complicated", linking them to US pressure on Russia for peace and India's reluctance to open its markets to American goods

United States (US) economic advisor Kevin Hassett on Wednesday (local time) said that Washington will not change its stance on trade talks with India unless New Delhi makes concessions.

 

Speaking to reporters, Hassett echoed US Treasury Secretary Scott Bessent’s views on India-US trade negotiations, calling it a “complicated relationship”.

 

Hassett said the negotiations have been tied to the pressure the US has been trying to put on Russia to secure a peace deal and “save millions of lives”. He added that it is also related to India’s “intransigence” about opening its markets to US goods.

 

“If the Indians don’t budge, I don’t think President Donald Trump will,” Hassett said. His remark comes amid the US has imposed a 50 per cent duty on Indian imports, which includes a 25 per cent penalty for continuously buying Russian oil.

 

‘Will come together’: Bessent

Meanwhile, Bessent on Wednesday, also said that India and the US will eventually “come together”.

 

“This is a very complicated relationship. Prime Minister Narendra Modi and Trump have a very good relationship at that level... I do think India is the world's largest democracy, and the US is the world's largest economy. I think at the end of the day we will come together,” he told Fox Business channel.

Bessent also accused India of profiteering from the imports of Russian oil despite global concerns.

 

India-US trade talks

India and the US held five rounds of trade negotiations up to July 2025. A sixth round, scheduled for August 25 in New Delhi, was called off following the announcement of additional tariffs. The talks reached an impasse over US demands to sell dairy and farm products, including GM crops, in India. Concerns about the impact of such imports on the country’s agriculture and dairy sectors, which employ a large share of the workforce, were seen as the main sticking point.

 

India, US keep channels open

Government sources, however, said on Wednesday that communication lines between the two sides remain open to address the tariff dispute. They added that the overall impact of the tariffs is expected to be limited, given the diversified nature of Indian exports.

 

Separately, Indian and US officials convened a 2+2 Intersessional Dialogue on August 25, where they reviewed bilateral initiatives, assessed regional security developments, and exchanged views on a range of common strategic interests, the Ministry of External Affairs (MEA) said on Tuesday.