US Treasury Secretary Scott Bessent expressed confidence that India and the United States will eventually come together to resolve their trade dispute. He stressed that dialogue between the two nations remains active despite fresh tensions.

Speaking just hours after President Donald Trump’s new tariffs came into effect in India on Wednesday, Bessent remarked, “I think at the end of the day, we will come together. Both sides have concerns on how this will play out and both sides are looking to resolve them. Communication channels are open.”

US pressure on trade and Russian oil

Bessent said Washington currently holds the advantage in trade negotiations, which were paused after the US imposed 50 percent tariffs. He also criticized India’s decision to keep buying Russian oil despite American objections.

Calling the situation complex, he noted, “This is a very complicated relationship. But President Trump and Prime Minister Modi have very good relationships at that level.”

Delay in trade deal

The Treasury Secretary admitted he had expected a trade agreement with India by mid-year but said New Delhi’s approach has been slow and “performative.”

He explained, “I thought India could be one of the earlier deals. And they kind of tapped us along in terms of the negotiations. And then there is also the aspect of the Russian crude purchases, which they’ve been profiteering on. So there are many levels going on here.”

India’s firm stance on oil imports

India, however, has defended its right to buy Russian crude. External Affairs Minister S Jaishankar responded last week by saying, “If you have a problem buying oil or refined products from India, don’t buy it. Nobody forces you to buy it. Europe buys, America buys, so if you don’t like it, don’t buy it.”

New Delhi boosts exports

Meanwhile, Indian trade officials said they are not expecting any immediate relief from the US tariffs. A senior official from the Ministry of Commerce told Reuters that the government has prepared support mechanisms to help exporters hit by Trump’s measures.

Authorities are also working on diversifying India’s export markets to reduce reliance on the US. Plans are in motion to expand trade with China, Latin America, and the Middle East. The official said, “The government has identified nearly 50 countries for increasing Indian exports, particularly of textiles, food processed items, leather goods, marine products.”