US Treasury Secretary Describes India as 'Recalcitrant' in Trade Talks
US Treasury Secretary Scott Bessent has described India as a "bit recalcitrant" in ongoing trade negotiations, though he expressed hope for agreements by October. The comment comes as Washington imposed an additional 25% tariff on Indian goods in response to India's Russian oil purchases, raising the total tariff to 50%. Indian officials have called the US action "unjustified," and analysts noted the term suggests a US perspective of India being an obstacle in the talks.
Unpacked:
The US imposed extra tariffs to pressure India for continuing to buy Russian oil and military equipment, which Washington views as undermining Western sanctions on Russia amid ongoing geopolitical tensions. The additional tariffs serve as both economic leverage and a political signal to discourage India's ties with Russia.
Key sticking points include rules of origin, certification, compliance requirements, and dispute resolution clauses. India is also firm on excluding dairy and rice from the deal, while the US pushes for broader agricultural access. These unresolved issues have stalled the negotiations.
The US is India's top trading partner, with bilateral trade totaling $186 billion through FY2024–25. Higher tariffs could disrupt supply chains, increase costs for exporters and consumers, and strain diplomatic relations, potentially affecting broader economic and strategic ties.
Indian officials, including Commerce Minister Piyush Goyal and Foreign Minister S. Jaishankar, have called the tariffs “unfair, unjustified, and unreasonable.” India is reviewing the impact, consulting stakeholders, and has pledged to take all necessary steps to safeguard its national interests.