Donald Trump's senior economic advisor warned that if India does not cut imports of Russian crude oil, then US President Donald Trump is not likely to ease Washington's retaliatory tariffs on Indian exports. US National Economic Council Director Kevin Hassett said trade talks with India are "complicated," faulting India for its "intransigence" in allowing American goods into Indian markets.
"If the Indians don't move, I don't believe President Trump will," Hassett told reporters. On Wednesday, the US doubled tariffs on Indian imports to 50 percent—highest on any country but Brazil—including a further 25 percent duty tied to India's purchase of Russian crude oil.
Hassett said that talks with India are "complicated," adding that some of the problem "has been tied to the pressure we've been attempting to put on Russia in order to obtain a peace agreement and save millions of lives. And then there's the Indian intransigence regarding opening their markets to our goods."
Describing trade negotiations as a marathon, Hassett underlined the necessity for patience and having a long-term view. "When you consider trade negotiations, one thing we have all learned is that you have to keep your eyes on the horizon and appreciate that there are going to be ebbs and flows before we get to the final position," he added.
Hassett’s comments echoed those of US Treasury Secretary Scott Bessent, who noted that the high tariffs on India are "not just over India's purchase of Russian oil" but also due to the prolonged nature of the ongoing trade negotiations.
"I'd expected we'd have a deal in May or June; that India would be one of the first deals. But they, you know, tapped us along," Bessent said Wednesday to Fox Business.
He called New Delhi "a bit uncooperative" during negotiations, adding, "This is a very complicated relationship."
"I do believe India is the world's largest democracy, and the US is the world's largest economy. I believe eventually we will be together," he replied.
India has stood firm that it will oppose US pressure, with Prime Minister Narendra Modi stating that he would "never compromise" the country's farmers' interests.
Officials place the estimated tariffs at $48.2 billion for Indian exports to the US. They cautioned that while the short-term effects of the new levies might seem contained, the ripple effects on the economy could pose immense problems.
The new tariffs have the potential to make exports to the US economically non-viable, resulting in loss of jobs and weaker economic growth, officials cautioned.
Read also| Dubai Princess, Who Announced Split on Instagram, Is Now Engaged to Rapper
