India-US trade: The trade tussle between India and the United States intensified on Tuesday as Washington’s 50% additional tariffs on Indian goods officially took effect. The move, announced by President Donald Trump, is seen as a response to India’s continued purchase of discounted Russian crude oil — a decision that has long irked Washington.
From 25% to 50%: The Steep Tariff Hike
The timing of the tariffs is significant. Just months ago, the Trump administration hinted at a possible interim trade deal that could have prevented such steep duties. Initially, the US imposed a 25% tariff on Indian goods, but this was quickly doubled, resulting in a total of 50%. The official reasoning: New Delhi’s persistent energy ties with Moscow.
Complicated Relationship: Bessent
Speaking on the day the higher tariffs took effect, US Treasury Secretary Scott Bessent acknowledged the complexity of the relationship. Responding to a question by Fox News about India’s Foreign Affairs Minister S Jaishankar asking the US to not buy refined oil from New Delhi if it doesn’t like it, the US Tresury Secretary was caught off-guard.
“This is a very complicated relationship. President Trump and Prime Minister Modi have a very good relationship. It’s not just about the Russian oil,” he said.
The Treasury Secretary further added, “India came very early after Liberation Day and started negotiating on tariffs, and we still don’t have a deal. I thought we would have one by May-June.”
Bessent admitted frustrations over stalled negotiations, noting India’s crude imports from Russia. “There are many levels going on here. 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 added.
“The US is the deficit country. When there is a skewness in the trade relations…Indians are selling to us at a very high tariff,” said Bessent, defending US tariffs.
US Treasury secretary Scott Bessent: I thought India US will have a trade deal by May/June. India profiteering on Russian crude oil purchases.pic.twitter.com/5WGzVVDU21
— Sidhant Sibal (@sidhant) August 27, 2025
Jaishankar’s Blunt Reply
But, if Washington expected New Delhi to retreat under pressure, India’s External Affairs Minister S. Jaishankar had other plans. Known for his sharp and witty responses, Jaishankar turned the debate on its head with a remark that has since gone viral.
Earlier, Jaishankar had said that if the US doesn’t like New Delhi buying oil from Russia, then Washington should stop buying from India. “It’s funny to have people who work for a pro-business American administration accusing other people of doing business. If you have a problem buying oil or refined products from India, don’t buy it. Nobody forces you to buy it. Europe buys, America buys, so you don’t like it, don’t buy it,” said Jaishankar.
India Won’t Be Bowled Over Easily
The blunt retort has been widely described as a “googly” — a cricketing term for a deceptive ball — leaving the US side scrambling for answers. Analysts say Jaishankar’s stance reflects India’s growing confidence in defending its economic choices, particularly energy security, amid shifting global alignments.