The trade standoff between India and the United States escalated on Wednesday after Washington slapped an additional 25 per cent duty on Indian imports, raising the total tariff to 50 per cent. While US Treasury Secretary Scott Bessent struck a note of optimism about bilateral relations, Minister of State (MoS) for External Affairs Kirti Vardhan Singh sharply criticised the move, calling it “unjustified, unreasonable, and unfair.”
Trump and Modi Share ‘Good Rapport’: Bessent
Speaking to Fox Business, Scott Bessent emphasised the resilience of India-US ties despite rising tensions over Russian oil and defence purchases. “I do think India’s the world’s largest democracy, the US is the world’s largest economy. I think at the end of the day we will come together,” he said.
Bessent highlighted the personal equation between US President Donald Trump and Prime Minister Narendra Modi, describing it as a “very good rapport at the top level.” However, he acknowledged the complexity of the relationship.
“This is a complicated relationship. President Trump and Prime Minister Modi have a very good rapport at the top level, but it’s not just about Russian oil,” he noted.
The Treasury Secretary noted the slow pace of trade negotiations. “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… There’s also that aspect of Russian crude purchases which they have been profiteering on,” he remarked.
On the status of the trade deal between the two countries, he said that “we still don’t have a deal”, terming that India’s stance regarding the talks as “performative”.
“The US is a deficit country. When there is a schism in trade relations, the deficit country is at an advantage. It’s the surplus country that should worry. The Indians are selling to us; they have very high tariffs, and we havea very large deficit with them,” he said.
MEA Slams ‘Selective’ Tariffs
In a strong response from New Delhi, MoS Kirti Vardhan Singh accused Washington of selectively targeting India while ignoring similar practices by other countries.
“We feel these tariffs are totally unjustified and they’re unfair. Because the reasons that have been given to us, those same causes, those same reasons apply to many other countries, but the tariffs have been selectively imposed on us, so that’s why I say they are unreasonable, unjustified and unfair,” Singh said, as quoted by news agency ANI.
The new tariffs, announced by the US Customs and Border Protection (CBP), stem from President Trump’s Executive Order 14329 of August 6, 2025, and came into effect on August 27. The 25 per cent increase, imposed on top of existing duties, was linked to India’s import of Russian crude oil.
‘India’s Economy Strong Enough to Withstand Pressure’: MoS Kirti Vardhan Singh
Assuring that India will protect its national and economic interests, Singh said the government was committed to defending energy security and industry.
“Our economy is strong enough, our government will protect the interests of our country, and we will continue to look at markets for all resources because we have a very large population whose energy security also has to be addressed,” he said.
He further expressed confidence that the country’s resilience would help it weather the tariff hike.
“Our economy is very strong, our industries are very strong, and we will certainly not let our country suffer… We will study what is going to happen, but we are taking appropriate steps so that it does not harm our economy and let me assure you that the strength of our economy will carry us through these times…” Singh added.
On the matter of Russian oil, the minister firmly defended India’s stance. “The world is always changing… And we are well prepared to meet up with any eventuality… Our economy, like I said, is growing, strong, and resilient, and we will, of course, match and meet these coming challenges. We will continue to purchase energy sources from whichever country benefits us,” he said.
