WEB DESK
New Delhi/Washington, Aug 27 — U.S. Treasury Secretary Scott Bessent on Wednesday described the India–U.S. relationship as “very complicated” but expressed optimism that both nations would eventually reconcile their differences. Speaking to Fox Business, Bessent said, “President (Donald) Trump and Prime Minister (Narendra) Modi have very good relations at the leadership level. It’s not just about Russian oil. India is the world’s largest democracy, and the U.S. is the largest economy. At the end of the day, we will come together.”
His remarks came as U.S. President Donald Trump’s additional 25 per cent tariff on Indian imports — imposed in retaliation for India’s continued purchases of Russian oil — took effect. With this, the cumulative tariff burden on Indian goods entering the American market now stands at 50 per cent. Trump had earlier signed two executive orders, on July 31 and August 6, doubling down on punitive trade measures against India.
Indian Response and Political Criticism
In New Delhi, Prime Minister Narendra Modi reiterated his ‘Swadeshi’ and “vocal for local” call on Tuesday, urging citizens to reduce dependence on imports and support domestic industry. The government argues that a stronger self-reliant economy will shield India from global trade disruptions.
However, the Opposition criticised the government’s handling of the crisis. Congress president Mallikarjun Kharge blamed what he termed a “superficial foreign policy” for exposing Indian exporters to steep tariffs that could lead to “huge job losses.” Party leader Jairam Ramesh warned that the “Trump double tariff” would hit India’s labour-intensive exports the hardest — particularly textiles, gems and jewellery, leather, marine products, and engineering goods.
Government Sources Stress Calm
Despite concerns, government sources said communication channels remain open between New Delhi and Washington to resolve the dispute. They noted that the diversified structure of Indian exports would soften the overall blow. “There is no cause for panic. This is a temporary phase in a long-term relationship,” officials stated, adding that efforts are underway to ensure exporters adjust to the new conditions.
