If Indians don't budge, Trump will not: top US economic advisor on tariffs
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Washington/New Delhi: US President Donald Trump’s top economic adviser has warned that India risks continued high tariffs on its exports unless it reduces purchases of Russian crude, further straining already tense trade negotiations between the two countries.
Kevin Hassett, Director of the US National Economic Council, described talks with New Delhi as “complicated,” accusing India of being reluctant to open its markets to American goods.
“If the Indians don’t budge, I don’t think President Trump will,” Hassett told reporters on Wednesday, as Washington doubled tariffs on Indian products to 50 percent — the highest rate for any country except Brazil. The increase included a 25 percent additional duty tied directly to India’s crude oil trade with Moscow.
Hassett argued that the tariffs were part of broader US pressure on Russia. “Part of it 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,” he said.
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.”
Hassett’s comments echoed those of Treasury Secretary Scott Bessent, who earlier suggested that tariffs were not only about India’s oil trade with Russia but also due to stalled trade 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,” Bessent told Fox Business.
He described the negotiations as “very complicated,” but added: “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.”
New Delhi has insisted it will not bow to US pressure, with Prime Minister Narendra Modi declaring he would “never compromise” the interests of India’s farmers.
Officials estimate the new tariffs will affect $48.2 billion worth of exports, warning that while the short-term impact may be contained, the longer-term consequences could include job losses and slower economic growth. They cautioned that the higher duties risk making Indian shipments to the US commercially unviable.