Trump team 'frustrated' with India over trade, says US Treasury Secy

US Treasury Secretary accused India of refining and reselling Russian oil, calling the country 'not a great global actor'

US Treasury Secretary Scott Bessent on Thursday expressed dissatisfaction with India’s approach to trade negotiations, saying President Donald Trump and his trade team have grown “frustrated.”

 

This comes a day after Trump announced a 25 per cent tariff on all imports from India starting August 1, along with an unspecified penalty for India’s continued purchases of Russian oil and military hardware.

 

“Well, I don't know what's going to happen. It will be up to India. India came to the table early. They've been slow rolling things. So I think that the President, the whole trade team, has been frustrated with them,” Bessent told CNBC.

 

He also accused India of refining and reselling Russian oil, calling the country “not a great global actor.” Analysts view Trump’s sudden tariff move as a strategy to pressure New Delhi into agreeing to US trade terms, especially as Washington has recently secured favourable deals with Japan, the UK, and the EU. 

  Both sides have been engaged in negotations to finalise an interim trade agreement since Trump announced his reciprocal tariifs in April this year. Five rounds of talks had already been concluded, with a sixth scheduled for late August - when a US team is expected to reach New Delhi on August 25 - when the US President suddenly announced the 25 per cent tariff against India.   In a post on his social media platform Truth Social on Wednesday, Trump cited India's "strenuous and obnoxious non-monetary Trade Barriers" as a reason for the tariff imposition, besides its continuing purchases of Russian energy and military equipment. Shortly thereafter, he maintained that negotiations were continuing.   On Thursday, however, he seemed to take a more hardline position, writing: "I don’t care what India does with Russia. They can take their dead economies down together, for all I care." 

 

Later in the day, Commerce and Industry Minister Piyush Goyal said in Parliament that India would take all necessary steps to protect its national interests and that the government is currently reviewing the impact of the new tariff measures.  The new tariff rates are likely to hit several export sectors hard, particularly mobile and electronic components, automobile components, gems and jewellery, seafood exports, apparel and textiles, and pharmaceuticals, among others. The higher customs duties could also throw a spanner in Apple's plans to expand its iPhone manufacturing in India, which already accounts for almost 36 per cent of smartphone imports in the US.