As India grapples with the economic implications of 50 per cent tariffs by the US, American Treasury Secretary Scott Bessent on Wednesday expressed optimism about the future of bilateral ties, even as he criticised India’s energy policy and trade stance.
Bessent acknowledged the complexity of the India-US relationship and maintained that both will eventually find common ground. He said, “This is a very complicated relationship. PM Modi and Trump have a very good relationship at that level. 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.”
However, Bessent did not hold back criticism of India’s continued imports of Russian crude oil, suggesting that New Delhi has been profiteering from discounted purchases despite global concerns over sanctions against Moscow.
The 50 per cent tariff on Indian goods includes a 25 per cent penalty component, directly linked to India’s ongoing trade in Russian oil.
In addition to energy-related tensions, trade talks between India and the US appear to have reached a deadlock. Bessent accused India of being performative in its approach, saying, “The Indians came in early after Liberation Day to start negotiating on tariffs and we still don’t have a deal. I thought we would have a deal by May or June. I thought India could be our earlier deals and they tapped us along in terms of negotiations.”
So far, the two sides have completed five rounds of trade discussions up to July 2025. The sixth round, which was scheduled to take place in New Delhi on August 25, was called off due to persistent disagreements over the import of Genetically Modified (GM) crops and American dairy products — issues that remain politically sensitive in India.
Despite the stalled talks, Ministry of External Affairs (MEA) said bilateral engagement remains on track. On Tuesday, the MEA confirmed that Indian and US officials participated in the 2+2 Intersessional Dialogue on August 25, where they discussed key bilateral initiatives, regional security developments, and shared strategic priorities.
While both sides continue to emphasise shared democratic values and long-term strategic goals, the widening rift over trade and energy policy presents a serious challenge to the partnership. Still, Bessent’s comments suggest that both nations are expected to find a way forward through continued diplomatic engagement.