‘At the end of the day we will come together,’ says US Treasury chief as tariffs bite India

As tariff tensions between India and the US deepened on Wednesday, with Washington imposing an additional 25% levy on New Delhi over purchase of Russian oil and defence equipment,bringing the combined tariffs imposed by the United States on its ally to 50%. US Treasury Secretary Scott Bessent struck a note of optimism, saying he was confident of the strength of bilateral ties.

In an interview to Fox Business, Bessent said, “India is the world’s largest democracy, the US is the world’s largest economy. At the end of the day, we will come together.”

On the status of a trade deal, however, he admitted progress had been slow. “We still don’t have a deal. I thought we would have one by May or June. India’s approach has been performative, and while they began negotiating soon after Liberation Day, they’ve kept us tapped along. There’s also the issue of Russian crude purchases, which they have been profiteering on,” he said.

Bessent added that while President Donald Trump and Prime Minister Narendra Modi enjoy a strong rapport at the top level, “this is a complicated relationship, and it’s not just about Russian oil.”

A PTI report cited government sources in New Delhi saying, “communication channels remain open between India and the US and efforts will continue to resolve the ongoing tariff issue,” government sources said on Wednesday.

“The impact (of the tariffs) is unlikely to be as severe as feared given the diversified nature of Indian exports,” the sources said, adding the communication lines are open between India and the US to resolve the issue.

The sources further said that there is no cause for panic as far as exporters are concerned, stressing “it is a temporary phase in a long-term relationship” between India and the US.