India, US will 'come together' despite 50% tariffs: Treasury Secretary

US Treasury Secretary Scott Bessent, however, criticised India's continuous imports of Russian oil, saying that they have been profiteering from it

As India braces for the impact of 50 per cent tariffs imposed by the United States (US), Treasury Secretary Scott Bessent on Wednesday said that India and the US will eventually “come together.”

 

“This is a very complicated relationship. PM 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. 

Meanwhile, communication channels remain open between India and the US to resolve the tariff issue, news agency PTI on Wednesday reported, anonymously quoting a government official.  The official added, "The impact (of the tariffs) is unlikely to be as severe as feared given the diversified nature of Indian exports."   

 

Criticism of Russian oil imports

However, Bessent criticised India’s continued imports of Russian crude, saying it has been profiteering from the purchases despite ongoing global concerns.

 

The 50 per cent duty on India includes a 25 per cent penalty for importing Russian oil.

 

India accused of being 'performative' in trade talks

 

Talking about the trade deal with India, Bessent said that we still don't have a deal because New Delhi has been "performative".

 

"The Indians came in early after Liberation Day to start negotiating on tariffs and we still don't have a deal. I thought we would have a deal by May or June. i thought India could be our earlier deals and they tapped us along in terms of negotiations," he said.

 

India and the US conducted five rounds of trade talks until July 2025. The sixth round of talk was scheduled to take place in New Delhi on August 25 but was eventually called off after the additional tariffs were announced. The talks had hit a roadblock over allowing US dairy and agri products - including genetically-modified (GM) crops - into India. Political sensitivities over how such imports would impact the Indian agri and dairy sectors - which account for a significant portion of employment in the country - are said to have led to the impasse.

 

On Tuesday, the Ministry of External Affairs (MEA) said that Indian and US officials held a 2+2 Intersessional Dialogue on August 25 where they discussed bilateral initiatives, regional security developments, and exchanged perspectives on a number of shared strategic priorities.

 

Very high tariffs from India

 

Bessent further said that the US has been the deficit country in terms of the trade with India, which imposes very high tariffs on US goods.

 

"The US is the deficit country. When there is a schism in trade relations, the deficit country is at an advantage. It's the surplus country that should worry. So, the Indians are selling to us. They have very high tariffs and we have a very large deficit with them," he said.

 

Rupee not a worry

 

On being asked if he thinks New Delhi will carry out transactions in rupee instead of the US dollar, Bessent said, “There are a lot of things to worry about, and the rupee isn’t the one he is worried about becoming the reserve currency.”