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Kevin Hassett said 50% tariff on India is not only about Russian oil purchase but also greater access to Indian market. (Photo: Video grab)

‘If the Indians don’t budge…’: Trump’s economic adviser issues fresh trade warning to India

| @indiablooms | Aug 28, 2025, at 04:56 pm

Donald Trump’s chief economic adviser has cautioned that unless India reins in its imports of Russian crude, the US President will not soften his position on Washington’s steep tariffs against Indian goods.

US National Economic Council Director Kevin Hassett described trade talks with New Delhi as "complicated," accusing India of "intransigence" in allowing greater access for American products. "If the Indians don't budge, I don't think President Trump will," he remarked.

On Wednesday, Washington doubled tariffs on Indian exports to 50 per cent—the highest for any country apart from Brazil.

This includes an additional 25 per cent duty tied directly to India’s Russian oil purchases.

Hassett explained that part of the friction in negotiations "has been tied to the pressure we've been trying to put on Russia in order to secure a peace deal and save millions of lives. And then there's the Indian intransigence about opening their markets to our products."

Comparing the talks to a marathon, Hassett said they demanded patience and recognition of "ebbs and flows" before the two sides could reach a final settlement.

The comments mirror US Treasury Secretary Scott Bessent’s recent remarks, where he stressed that the high tariffs were "not just over India's purchase of Russian oil" but also the drawn-out nature of discussions. "I'd thought we'd have a deal in May or June; that India could be one of the earliest deals. But they, kind of, tapped us along," he told Fox Business, calling the relationship "very complicated."

Still, Bessent emphasised optimism: "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."

On its part, India has reiterated it will resist external pressure. Prime Minister Narendra Modi has declared he would "never compromise" on protecting farmers’ interests.

The government estimates that $48.2 billion worth of exports could be affected by Washington’s tariffs.

Officials have warned that while the immediate hit may be limited, the broader economic fallout could make shipments commercially unviable, leading to job losses and slower growth.

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