U.S. Threatens More Tariffs on India if Trump–Putin Peace Talks Collapse

The U.S. administration has signaled it may impose further tariffs on Indian exports if the high-stakes peace summit between President Donald Trump and Russian President Vladimir Putin fails to produce meaningful outcomes. A senior U.S. official outlined that secondary tariffs could be raised beyond the current 50% level—already slapped on Indian imports—as pressure mounts over India’s continued oil trade with Russia. Washington perceives these purchases as indirectly supporting Moscow’s war efforts in Ukraine. Meanwhile, the U.S. challenged European countries to “put up or shut up” regarding solidarity in opposing Russia’s aggression. This development comes in the wake of Washington’s aggressive tariff strategy. Earlier this month, Trump doubled tariffs on many Indian goods—stacking an additional 25% penalty atop an existing tariff—blaming New Delhi’s deepening energy ties with Moscow. The escalating rate has raised alarm. The U.S. had previously dangled the possibility of imposing "secondary tariffs" of up to 100% on countries that continue trading with Russia, including India. As markets brace for geopolitical shifts, India’s stock indices are showing cautious optimism. Positive sentiment in Asia and hopes for a Federal Reserve rate cut are fueling modest gains, despite lingering trade tensions tied to the Trump–Putin summit. What It Means: Increased leverage for the U.S.: The threat of escalating tariffs gives Washington a negotiating edge, tying international peace efforts to economic diplomacy. India caught between diplomacy and economics: New Delhi is faced with navigating complex geopolitical demands while safeguarding its trade-dependent sectors. Global ripple effects: The looming summit isn’t just about Ukraine—it could redefine U.S. economic pressure strategies on its allies and partners.