"Up to negotiators": Top White House adviser on Russia sanctions' impact on US-India trade talks amid evolving tariffs
By Reena Bhardwaj, Washington, DC, August 7
A senior White House economic adviser has said it is up to negotiating teams -- not him -- to determine whether a new US sanctions bill targeting Russian oil buyers will affect trade talks with India.
Kevin Hassett, director of the White House National Economic Council, was responding to a question from ANI. He declined to elaborate, saying only that the question was "up to the negotiators."
The US Senate has moved a step closer to passing a bipartisan sanctions bill that could increase economic pressure on major buyers of Russian crude oil, including India and China. Senators voted 86-12 this week to clear an initial procedural hurdle for the legislation, formally called the Lindsey O Graham Sanctioning Russia and Iran Act of 2026.
If it becomes law, the bill would let the US president impose tariffs of up to 100% on imports from countries that buy large volumes of Russian oil or gas, though it would not apply automatically and remains subject to legal and executive conditions. The bill still needs to clear the House of Representatives before it can become law.
Washington maintains that the legislation aims to restrict petroleum earnings supporting Russia's military campaign in Ukraine, identifying India, China, Slovakia, Hungary and Azerbaijan as primary countries of concern.
The legislative friction unfolds against the backdrop of wider India-US trade negotiations, where duty structures remain a central point of contention.
In February 2026, the two countries outlined an interim trade understanding proposing a lowered reciprocal tariff rate of 18% on Indian exports, in exchange for expanded Indian procurement of US energy resources and technology.
Implementation was disrupted, however, after the US Supreme Court invalidated the reciprocal tariff mechanism under the International Emergency Economic Powers Act (IEEPA), forcing the administration to adopt a temporary Section 122 framework.
Currently, under a subsequent Section 301 framework tied to forced-labour considerations, most Indian goods incur a 10% supplementary duty above standard Most-Favoured-Nation (MFN) rates.
Despite these shifting structures and uncertainties, both sides continue active dialogue on a transitional trade understanding designed to ease tariff pressures, broaden market access and deepen economic ties.
Hassett has previously called the US-India relationship "complicated" but said he remains hopeful of a deal.
— ANI
Reader Comments
The US keeps playing this geopolitical chess game while ordinary Indians just want stable fuel prices. Every time they impose sanctions, our rupee weakens and inflation spikes. Both governments need to stop the brinkmanship and find a software solution that protects their own citizens.
"Up to negotiators" - that's just diplomatic jargon for "we have no clue". Hassett knows his comments will impact markets and investor confidence in India. This 100% tariff threat is pure intimidation, but India has done well in the past navigating such pressure. We'll find a middle path, as always. 🧘♂️
As someone working in international trade, this uncertainty is terrible for business. The Supreme Court invalidated IEEPA tariffs, then we get Section 122, then Section 301 - the US is changing goalposts every quarter. Indian exporters deserve stability, not this continuous whiplash. The negotiators need to work faster.
Why should India sacrifice its sovereign foreign policy for American geopolitical ambitions? We have been independent since 1947. Let's buy Russian oil, Iranian oil, whoever gives us the best deal. The Modi government must stand firm and not buckle under this pressure. India first, always! 🇮🇳✊
Sometimes I wonder if these sanctions actually hurt the countries they target or just their own global influence. Russia still sells to China, India buys at a discount - everyone adapts. Meanwhile, ordinary Indian families struggle with rising fuel costs. The government should prioritise our economy over this diplomatic drama.
We welcome thoughtful discussions from our readers. Please keep comments respectful and on-topic.