India’s commerce secretary, Sunil Barthwal, said on Thursday that the trade deal between New Delhi and the United States could be concluded by September–October hours after US treasury secretary Scott Bemssent indicated that Washington could raise secondary tariffs.
Barthwal said the Indian government is engaged in the negotiations with the US. He added that the status of the US delegation visiting India for the next round of trade talks will be known closer to the scheduled date of August 25, reported PTI.
The statement comes amid heightened tensions over tariffs.
Bemssent has said that the US could raise secondary tariffs on India, depending on the outcome of President Donald Trump’s meeting with Russian President Vladimir Putin in Alaska on Friday.
“We’ve put secondary tariffs on Indians for buying Russian oil. And I could see, if things don’t go well, then sanctions or secondary tariffs could go up,” Bessent told Bloomberg TV on Wednesday.
In recent weeks, the US has imposed a 25 per cent penalty on Indian imports and an additional 25 per cent levy on purchases of oil and weapons from Russia, raising the total tariff burden to 50 per cent.
Washington accuses New Delhi of indirectly funding Moscow’s war in Ukraine through its continued imports of Russian crude.
India has rejected the charges, calling the measures “unfair, unjustified, and unreasonable” and maintaining that Russian oil imports are essential for national energy security.
The disagreement comes as trade negotiations between the two countries remain stalled after breaking down earlier this month.
In an interview with Fox News, Bessent described India as “a bit recalcitrant” in recent trade talks. The discussions were suspended after Trump linked the impasse to India’s defence and energy dealings with Russia, alongside unspecified “other concerns”.
The Alaska summit is being seen as a critical point. A diplomatic breakthrough between Trump and Putin could ease US pressure on India, while a collapse in talks risks triggering “secondary sanctions”, penalties aimed at punishing third countries that maintain business ties with targeted nations.
Since the Ukraine war began, India’s imports of discounted Russian crude have risen, accounting for 35–40 per cent of its oil purchases in 2024 compared to just 3 per cent in 2021.
New Delhi has argued that as a major energy importer, it must source the cheapest crude available to shield millions of poor citizens from rising costs.
The Trump administration’s 50 per cent tariff rate on India is set to take effect on August 27. Experts warn that the move could hit India’s export-oriented sectors such as textiles and jewellery, and may slow economic growth by up to half a percentage point.