US Treasury Secretary Scott Bessent claims that since the penalties have already drastically reduced Indian imports, there might be a “path” to removing the 25% tariffs placed on India for its purchases of Russian oil.
Will US lift its 25% tariff on India?
Bessent told Politico at the Davos World Economic Forum that Washington’s action had been successful. “India’s refineries have stopped buying Russian oil as a result of the 25% tariffs we imposed on them. So, that’s a success. Tariffs are still in place. There is still a 25% tariff on Russian oil. He called it “a check and a huge success” and said, “I would imagine that there is a path to take them off.”
Bessent also criticized the EU-India Free Trade Agreement, alleging that European countries were subtly aiding Russia’s conflict in Ukraine.
I should also point out that our European partners refused to sign this important trade deal with India. And just to be clear, let’s understand what’s happening. Before the invasion of Ukraine, two or three percent of the oil used in Indian refineries came from Russia. “The oil was approved,” Bessent declared.
After being sharply reduced and rising into the high teens, it was refined at 17, 18, and 19%. But in the ultimate act of irony and stupidity, guess who was buying the refined goods from the Indian oil? Europeans. He went on, “They are funding the war against themselves.”
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Interestingly, Bessent’s remarks came just days before European Council President António Luís Santos da Costa and European Commission President Ursula von der Leyen traveled to India.
From January 25 to 27, the leaders will travel to India. They will be the principal guests at the 77th Republic Day celebrations and co-chair the 16th India-EU Summit on January 27.
Bessent clarified the US stance on the issue earlier this week when he told Fox News, “India started buying Russian oil after the (Ukraine) conflict began, but President Trump put a 25% tariff on them, and India has geared down and has stopped buying Russian oil.” India has previously called US tariff action “unfair, unjustified, and unreasonable,” claiming that its energy choices are determined by national interests and market conditions.
Since then, the European Commission has tightened sanctions, arguing that refined oil products derived from Russian crude are subject to its import bans. It said that sanctions and enforcement are the responsibility of member states.
The remarks align with more general tensions in US-Indian trade relations. Trump’s 50% tariffs on Indian imports are a major source of contention due to energy ties to Russia.
Trade advisor Peter Navarro has repeatedly attacked New Delhi, referring to India as the “Maharaja of tariffs” and describing Russian oil imports as a national security issue. He has questioned why massive foreign consumers, particularly those in India, are catered to by US-built AI platforms as part of his broader criticism of trade.
India has used market conditions and energy security as justifications for its purchases of Russian petroleum on multiple occasions.
