Alaska: Hopes for a decisive outcome from the high-profile Alaska summit between U.S. President Donald Trump and Russian President Vladimir Putin fizzled on Friday, leaving India grappling with renewed uncertainty over looming U.S. tariffs.
For New Delhi, the stakes were high. A breakthrough between Washington and Moscow could have softened the blow of an additional 25 per cent duty that the Trump administration has tied to India’s continued imports of Russian crude. Instead, the summit concluded without a deal, despite both leaders claiming “progress.”
Speaking alongside Putin, Trump suggested that only a handful of issues remained unresolved, describing one as “the most significant,” though he declined to specify. He said Ukrainian and European counterparts would be briefed on the discussions. Putin, while striking an optimistic tone, stressed that Russia’s core positions on Ukraine remained unchanged and urged U.S. allies not to undermine potential understandings with Washington.
The lack of a concrete agreement underscores the deep divisions within Trump’s administration and among European partners. While Trump is eager to present a diplomatic win, NATO allies remain wary of any concessions to Moscow that could be seen as rewarding its invasion of Ukraine.
For India, the fallout is immediate. Since 2022, New Delhi has significantly increased its purchases of discounted Russian oil, thereby strengthening its energy security but attracting sharp criticism in Western capitals. The Biden-era exemptions that once shielded Indian trade now appear to be narrowing under Trump’s push to squeeze Moscow’s revenues.
Treasury Secretary Scott Bessent warned ahead of the Alaska talks that if peace efforts stalled, Washington would escalate tariffs not only on India but on other nations trading heavily with Russia. He urged Europe to align with the U.S. by clamping down on refined petroleum imports linked to Russian crude, much of which originates from India.
Congress is also weighing legislation that would allow tariffs as high as 500 percent on states seen as sustaining Russia’s war economy, a move that could intensify economic risks for India.
The Modi government must now calculate how far it can go in balancing cheap energy supplies from Moscow with the risk of mounting costs in its trade relationship with the United States. The Alaska stalemate has only sharpened that dilemma.
