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U.S. Defends 50% Tariffs on India as Pressure on Putin, Notes Early Energy Diversification

Trade envoy Jamieson Greer projects a possible resolution within weeks.

Overview

  • Greer says the levy combines a 25% reciprocal tariff with an additional 25% penalty tied to India’s increased purchases of Russian oil.
  • He argues Washington is not dictating India’s foreign relations and frames the measure as intended to maximize pressure on Vladimir Putin over the war in Ukraine.
  • Negotiations have moved into detailed stages after Greer met Commerce Minister Piyush Goyal in September, and U.S. officials say an agreement could be reached soon.
  • New Delhi has called the tariffs unjustified and unreasonable, with exposed sectors including textiles, gems and jewellery, and seafood; bilateral trade totaled $212.3 billion in 2024 with India running a sizable surplus.
  • Russia publicly rejects U.S. pressure, with President Vladimir Putin saying India will not allow itself to be humiliated and signaling interest in expanding trade with India.