US treasury secretary Scott Bessent suggested there could be a “path” to removing 25 per cent tariffs imposed on India over its purchases of Russian oil, claiming the penalties have already achieved their aim by sharply reducing Indian imports.
Speaking to Politico at the World Economic Forum in Davos, Bessent argued Washington’s move had delivered results. “We put 25% tariffs on India for buying Russian oil and the Indian purchases by their refineries of Russian oil have collapsed. So that is a success. The tariffs are still on. The 25% Russian oil tariffs are still on. I would imagine that there is a path to take them off,” he said, calling it “a check and a huge success”.
Bessent also took a swipe at the EU-India FTA accusing European countries of indirectly funding Russia’s war effort in Ukraine.
"I will also point out that our virtue signaling European allies refused to do it because they wanted to sign this big trade deal with India. And just to be clear, let's understand what's happening. Before the Ukraine invasion, approximately 2 or 3% of Indian oil that went into their refineries came from Russia. The oil was sanctioned," Bessent said.
"It got deeply discounted and moved up into the high teens. 17, 18, 19% was being refined. But in the ultimate act of irony and stupidity, guess who was buying the refined products from the Indian oil? The Europeans. They are financing the war against themselves," he went on to add.
Interestingly, Bessent remarks came days ahead of European Council President António Luís Santos da Costa and European Commission President Ursula von der Leyen visit to India.
The leaders will be in India between January 25 and 27, during which they will be the chief guests at the 77th Republic Day celebrations and will also co-chair the 16th India-EU Summit on January 27.
Earlier this week, Bessent further clarified the US stand on India's purchase of Russian oil telling Fox News, “India started buying Russian oil after the (Ukraine) conflict began, but President Trump put a 25 per cent 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”, maintaining that its energy decisions reflect national interest and market conditions.
The European Commission has since moved to tighten sanctions, saying refined oil products derived from Russian crude are covered by its import bans. It said member states are responsible for enforcement and penalties.
The remarks come amid wider strains in US-India trade ties. Trump has imposed tariffs totalling 50 per cent on Indian imports, with energy links to Russia a central flashpoint.
Trade adviser Peter Navarro has repeatedly criticised New Delhi, previously describing India as the “Maharaja of tariffs” and framing Russian oil purchases as a national security issue. He has also questioned why US-built AI platforms serve large overseas users, including in India, as part of his broader trade critique.
India has repeatedly defended its imports of Russian crude, saying its energy sourcing decisions are driven by market conditions and energy security.
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