US Treasury Secretary Scott Bessent on Friday indicated that Washington could roll back the additional 25 per cent tariff imposed on Indian imports over New Delhi’s purchase of Russian oil, saying Indian refinery imports of Russian crude had “collapsed” following the measure.
During an interview on the sidelines of the World Economic Forum in Davos, Bessent described the tariff as a “huge success” and suggested that a diplomatic route exists for its removal if India shifts its energy sourcing.
“We put a 25 per cent tariff 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. I would imagine there is a path to take them off, so that's a check and a huge success,” Bessent said.
His remarks come amid discussions in the US Congress on a proposed bipartisan bill that could impose duties of up to 500 per cent on countries importing Russian oil, a move that could significantly impact India, China and Brazil.
New Delhi has reiterated that its energy policy is guided by the need to secure affordable supplies for its population of 1.4 billion, maintaining an “India First” approach despite the threat of steeper US sanctions.
Responding to the proposed legislation, Ministry of External Affairs spokesperson Randhir Jaiswal said, “We are aware of the proposed bill. We are closely following the developments.”
Also read: US-EU sanctions on Russia failed: Scott Bessent
Bessent also criticised European countries for purchasing refined petroleum products from India that are produced using Russian crude, arguing that such trade indirectly supports Moscow’s war effort.
“Just to be clear, let's understand what's happening. Before the Ukraine invasion, approximately 2–3 per cent of Indian oil that went into its refineries came from Russia… But in the ultimate act of irony and stupidity, guess who was buying the refined products from the Indian refineries made from Russian oil? The Europeans. They are financing the war against themselves. They are financing the Russian,” he said.
He further suggested that the European Union has avoided imposing similar tariffs on India to protect negotiations for a proposed EU–India Free Trade Agreement, accusing European partners of “virtue signalling”.
“I will also point out that our virtue signalling European allies refused to do it because they wanted to sign this big trade deal with India,” Bessent added.
The EU and India are preparing to adopt a new comprehensive strategic agenda at their 16th summit in New Delhi, alongside negotiations on a Free Trade Agreement described by European Commission President Ursula von der Leyen as “the mother of all deals”.
Addressing the World Economic Forum earlier, von der Leyen said, “There is still work to do. But we are on the cusp of a historic trade agreement. Some call it the mother of all deals. One that would create a market of 2 billion people, accounting for almost a quarter of global GDP.”
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