Even as US President Donald Trump leads an aggressive push to end the war in Ukraine, the additional tariffs slapped on India—for its purchase of Russian crude—is unlikely to be lifted, indicated Treasury Secretary Scott Bessent.
Bessent, while appearing on CNBC’s ‘Squawk Box’ on Tuesday, reiterated the “profiteering” charge against New Delhi as he defended Trump’s decision to impose an additional 25% levies on Indian imports.
“They are just profiteering. They are reselling… This is what I would call the Indian arbitrage — buying cheap Russian oil, reselling it as product,” he said.
Earlier this month, Trump imposed so-called reciprocal levies of 25% on India, starting from Aug. 7. Subsequently, he announced another 25% tariff to “penalise” the country for fueling the “Russian war machine”. The additional levies are to come into effect from Aug. 27.
India, in an official response to Trump’s tariff move, pointed out that New Delhi’s purchase of Russian crude was “encouraged” by Washington after the Ukraine conflict erupted. This was done to “maintain stability” in the global oil market, the Indian Ministry of External Affairs said on Aug. 4.
The MEA had further pointed out that it was “unfortunate” that the US should choose to impose additional tariffs on India for actions that several other countries are “also taking in their own national interest”.
Apart from India, China is also one of the top buyers of Russian oil. However, the Trump administration has imposed no additional levies on Beijing for the same. Responding to this, Bessent told CNBC that China has been buying Russian crude way before the Ukraine conflict erupted.
On the other hand, India’s oil imports from Russia picked up after the war started in 2022. “They’ve made $16 billion in excess profits — some of the richest families in India,” Bessent said.
The Indian government, however, has already clarified that its imports are based on market factors and done with the “overall objective of ensuring the energy security of 1.4 billion people of India”.
