On Thursday, July 31, 2025, U.S. Treasury Secretary Scott Bessent publicly acknowledged growing frustration within the Trump administration over stalled trade negotiations with India.
His remarks came just a day after President Donald Trump announced a sweeping 25% tariff on all Indian imports, effective August 1, along with an additional, unspecified penalty for India’s continued purchases of Russian crude oil and military equipment.
Speaking to CNBC, Secretary Bessent expressed deep dissatisfaction with India’s pace during the ongoing trade discussions. “India showed interest early, but they’ve been dragging their feet ever since,” he said.
“Frankly, the President and the entire trade team are frustrated.” Bessent also criticized India for allegedly reselling Russian oil products on the global market, a move he characterized as undermining Western sanctions against Moscow. “They have not acted as a responsible global player,” he added.
The Tariff Bombshell
The surprise tariff announcement is widely viewed as a pressure tactic by President Trump, who is seeking to force India into accepting tougher trade terms more favorable to American interests.
It also appears to be part of a broader strategy, as the U.S. has recently signed beneficial trade deals with Japan, the United Kingdom, and the European Union.
India, for its part, has responded cautiously but firmly. In an official statement, the Indian government said it is currently evaluating the implications of the U.S. tariffs and will take all necessary steps to protect national interests.
The Ministry of Commerce emphasized that New Delhi remains committed to securing a fair and mutually beneficial agreement but will not compromise on its strategic autonomy or national priorities.
A Strong Relationship Under Strain
For decades, India-U.S. ties have been celebrated as a strategic partnership for the 21st century, grounded in shared democratic values, mutual interests in Indo-Pacific stability, and expanding collaboration in sectors such as defense, space, energy, and technology.
Only last week, a U.S. State Department official characterized the bilateral relationship as “strong and a top priority” for the administration, citing high-level engagement through the COMPACT Initiative and ongoing cabinet-level discussions.
Yet, the sudden imposition of tariffs, linked not only to trade disagreements but also to India’s geopolitical affiliations, has exposed deeper tensions in the relationship.
The Russia and BRICS Factors
President Trump has specifically tied the penalties to India’s oil and arms trade with Russia, a country currently under widespread Western sanctions due to its invasion of Ukraine. But he has gone further, bringing India’s membership in BRICS—a multilateral grouping of Brazil, Russia, India, China, and South Africa—into the equation.
In a pointed remark, Trump stated:
“India is part of BRICS, a group that many in America see as anti-U.S. If you can believe it, India is aligned with countries like Russia and China in that group. So yes, we are negotiating with them, but this kind of alignment doesn’t help.”
The BRICS comment has raised eyebrows in diplomatic circles, as India has historically pursued a non-aligned, multi-vector foreign policy, maintaining close ties with both Western and Eastern powers to serve its own national interests.
Trade Deal in Limbo
Despite the turbulence, sources close to the matter confirmed that negotiations for a long-anticipated India-U.S. interim trade deal have been completed, and the final draft is now awaiting President Trump’s approval. Key stakeholders, including U.S. Commerce Secretary Howard Lutnick, U.S. Trade Representative Jamieson Greer, and India’s Commerce and Industry Minister Piyush Goyal, have all endorsed the agreement.
President Trump, however, has indicated that he would like to personally speak with Prime Minister Narendra Modi before giving his final consent. The proposed deal is expected to offer greater access to Indian markets for American companies, potentially modeled after recent U.S. trade arrangements with Indonesia and other emerging economies.
“We’re still negotiating. We want a better deal for American businesses. And I want to speak directly with Prime Minister Modi before anything is finalized,” Trump told reporters.