Amidst escalating trade tensions between the United States and India, a member of President Trump's administration has offered a mixed assessment of the situation. While acknowledging India's actions as "not great" in certain areas, particularly regarding energy trade with Russia, the official expressed optimism that the two countries can resolve their differences.

Treasury Secretary Scott Bessent stated that the United States and India share a strong foundation and are capable of navigating their disagreements. "Two great countries will get this solved," he affirmed in an interview with Fox News. Bessent downplayed concerns about Prime Minister Narendra Modi's participation in a recent meeting with Russian President Vladimir Putin and Chinese President Xi Jinping, dismissing it as "largely performative". He emphasized that India's values align more closely with the U.S. than with Russia or China.

However, Bessent also criticized India's continued purchases of discounted Russian crude oil and the subsequent resale of refined products, arguing that this effectively finances Russia's war in Ukraine. He cited slow progress in trade negotiations as a key reason for Washington's decision to raise tariffs on Indian goods. Bessent further indicated that "all options are on the table" as the Trump administration considers additional sanctions against Russia.

These comments come in the wake of President Trump's renewed criticism of the trade relationship between the U.S. and India, which he has called a "totally one-sided disaster". Trump has accused India of imposing high tariffs that limit U.S. access to its market and has pointed to India's energy and defense purchases from Russia. The U.S. President also claimed India has offered to cut their tariffs to "nothing," but added that "it's getting late".

The U.S. recently implemented a 50% tariff on Indian goods in response to New Delhi's continued oil trade with Russia, which U.S. officials say is funding the war in Ukraine. These tariffs impact a wide range of goods, including textiles, gems and jewellery, footwear and leather products. Some sectors, such as pharmaceuticals and electronics, are largely exempt. Forecasts suggest that Indian exports to the U.S. may decline significantly, potentially impacting India's GDP and causing job losses.

India's trade minister has asserted that India will not "bow down" to the U.S. and will instead focus on attracting new markets. The minister added that India is "always ready if anyone wants to have a free trade agreement".

In 2024, the U.S. imported $87.3 billion in goods from India and exported $41.5 billion, resulting in a trade surplus for India of $45.8 billion. Total bilateral trade in goods and services between the two countries in 2024 was approximately $212 billion.

Amidst these tensions, talks for an India-U.S. trade deal have been postponed.