Donald Trump’s chief economic adviser has been issued a sharp warning to New Delhi, cautioning that India could face “serious consequences” if it seeks to bypass US trade restrictions and engage in deals that undermine Washington’s strategic interests.
Kevin Hassett, Director of the US National Economic Council, described the ongoing negotiations as “complicated” and tied New Delhi’s purchase of Russian crude oil directly to Trump’s refusal to ease trade pressure.
“If the Indians don’t budge, I don’t think President Trump will,” Hassett told reporters, as the US on Wednesday doubled tariffs on Indian goods to 50 per cent, the highest rate imposed on any country apart from Brazil. This included a 25 per cent additional levy linked to India’s energy trade with Moscow.
The adviser accused India of “intransigence” in opening its markets to American products, insisting that Washington’s economic push is also aimed at “securing a peace deal and saving millions of lives” by squeezing Russia’s revenues.
Comparing the negotiations to a marathon, Hassett added: “When you look at trade negotiations, one lesson we’ve all learnt is that you need to keep your eyes on the horizon and recognise that there are going to be ebbs and flows before we reach the final position.”
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The remarks were reinforced by Treasury Secretary Scott Bessent, who said the tariffs were not only about Russian crude but also the protracted nature of talks. “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. This is a very complicated relationship,” Bessent said in an interview with Fox Business.
While stressing that New Delhi had been “a bit uncooperative”, Bessent nevertheless expressed confidence in eventual convergence: “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.”
India, however, has held firm. Prime Minister Narendra Modi has declared he would “never compromise” the interests of the country’s farmers. Government officials estimate that $48.2 billion worth of Indian exports to the United States will be affected by the punitive duties.
Though the immediate impact may appear limited, officials have warned that ripple effects could render shipments commercially unviable, trigger job losses, and slow economic growth if the impasse persists.
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