New Delhi: The United States has issued a sharp warning to India, tying progress in trade negotiations to New Delhi’s continued purchase of Russian crude oil. Kevin Hassett, Director of the US National Economic Council and President Donald Trump’s Chief Economic Advisor, has said that Trump was unlikely to ease his hard line unless India shifted its position.
“If the Indians don’t budge, I don’t think President Trump will,” Hassett told reporters. He accused India of being slow to open its markets for American products and said the discussions had become unusually complex.
Duties hit record highs
The warning followed the US move to double tariffs on Indian goods, lifting them to 50 per cent. This is the steepest rate for any country apart from Brazil. Among the measures is an additional 25 per cent duty aimed at India’s crude oil trade with Moscow.
Hassett compared the drawn-out negotiations to a marathon. Progress, he argued, would involve “ebbs and flows” before the two nations could settle their differences. He also linked the tariffs to Washington’s effort to cut off Russia’s war funding, calling it essential for securing a peace deal and “saving millions of lives.”
“Indian Intransigence” 🤯: US Economic Adviser – “If the Indians Don’t Budge, I Don’t Think Trump Will Either”
Kevin Hassett seems to think that protecting India’s rights and rejecting elements of an FTA that aren’t mutually beneficial is INTRANSIGENT – simply India refusing to… https://t.co/gBZ3C9DEFS pic.twitter.com/cnWGXmUwAP
— RT_India (@RT_India_news) August 28, 2025
Treasury echoes concern
Hassett’s remarks echoed those of US Treasury Secretary Scott Bessent, who said the issue went beyond Russian oil and reflected delays in striking a trade deal. Bessent admitted he had hoped for an agreement earlier in the year but said New Delhi had been “a bit uncooperative.”
Even so, Bessent expressed optimism, noting: “India is the world’s largest democracy, and the US is the world’s largest economy. I think in the end we will come together.”
India refuses to yield
For its part, India has asserted that it will not yield to pressure from the US. Indian Prime Minister Narendra Modi has made it clear that his government would never sacrifice Indian farmers’ interests, which have been a major point of contention in the talks. India is confident that acceding to American demands could strip millions of livelihoods in its farm sector.
Massive blow to exporters
New Delhi also pointed out the probable economic impact of the recent tariff increase. They put estimates at around $48.2 billion for Indian exports to the US likely to be impacted. Although the immediate effect may seem contained, trade analysts caution that if shipments become commercially unprofitable, exporters will have to roll back, causing job losses and declining growth in key industries.
A fragile partnership
The escalating tensions highlight the intricacy of the India-US trade relationship. On the one side, Washington desires increased access to India’s rapidly expanding market, while on the other, New Delhi is bent upon safeguarding local producers and defending its strategic alliances.
With both sides digging in, hopes of a quick breakthrough appear slim. For businesses on both shores, the road ahead looks uncertain — a reminder that even close partners can struggle when strategic interests collide.
(With agency inputs)