Aug 28, 2025: Kevin Hassett, former chief economic adviser to Donald Trump, has issued a stern warning to India, stating that if the country continues its trade practices—specifically purchasing Russian crude oil—the United States will not soften its stance on tariffs imposed on Indian imports.
Hassett described trade talks with India as “complicated,” accusing the nation of being uncooperative in both market access and dealing with the geopolitical implications of its energy choices. The US recently raised tariffs on Indian goods to 50%, the highest for any country other than Brazil. This hike includes a 25% additional duty on India’s import of Russian oil, which the US has been targeting to pressure Russia amid the ongoing conflict in Ukraine.
“If the Indians don’t budge, I don’t think President Trump will,” Hassett said, emphasizing that India’s continued trade with Russia was a significant sticking point in US-India relations. He also linked these trade issues to the broader geopolitical context, noting that they were part of efforts to secure a peace deal in Ukraine and reduce global tensions.
Hassett further explained that trade negotiations should be approached with patience, comparing them to a marathon rather than a sprint. He stressed the importance of understanding that there will be ups and downs in the negotiations, and a final agreement may take time.
Echoing Hassett’s remarks, US Treasury Secretary Scott Bessent added that the high tariffs were not solely due to India’s crude oil purchases but also a result of the slow pace of trade discussions. Bessent expressed frustration with the lack of progress, saying, “I’d thought we’d have a deal by May or June, but India has been difficult to work with.”
Despite the pressure, India has maintained its position. Prime Minister Narendra Modi has firmly stated that India will not compromise on the interests of its farmers, a key constituency that would be affected by any trade concessions. The Indian government has also pointed out that these tariffs could impact approximately $48.2 billion worth of Indian exports to the US. Although the immediate effects may seem limited, officials warn of longer-term challenges, including potential job losses and slowed economic growth due to uncompetitive shipments to the US.
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