U.S. Slams India Over Surging Russian Oil Purchases
Tensions between Washington and New Delhi deepened Tuesday after U.S. Treasury Secretary Scott Bessent accused India of exploiting the Ukraine war to profit from discounted Russian crude.
Speaking to CNBC, Bessent highlighted that Russian oil now makes up about 42% of India’s total imports, a dramatic leap from under 1% before the conflict began. He contrasted that with China, where reliance on Russian supplies has only risen modestly, from 13% to 16%.
“India is engaging in opportunistic arbitrage—buying cheap Russian crude, refining it, and reselling for profit. That’s not acceptable,” Bessent said.
Trump’s Tariffs Target New Delhi
President Donald Trump earlier this month announced another 25% tariff on Indian goods, citing its role in bolstering Moscow’s wartime revenues. This brings the total additional tariffs against India since Trump took office to 50%.
The president has argued the measures are pressuring Russian leader Vladimir Putin to consider peace talks with Ukraine. However, Trump has avoided applying similar penalties on Beijing, despite its continued purchases of Russian oil.
Bessent defended the distinction, saying China had long been a steady buyer, while India’s sharp increase and resale of refined products represented “a very different situation.”
Strained Trade Talks
The tariff escalation comes after months of stalled negotiations on a broader U.S.-India trade agreement. Despite repeated assurances from both governments that a deal was close, progress has faltered.
New Delhi signaled on Tuesday it was prepared to ease tensions by suspending an 11% import duty on cotton until the end of September—an apparent gesture to U.S. agricultural concerns. But the move followed the abrupt cancellation of a planned visit by American trade officials, who were scheduled to travel to India from August 25–29.
With the U.S. and India now locked in a tariff standoff, uncertainty looms over whether the two sides can repair relations or if Washington’s pressure campaign will drive a deeper rift between the allies.
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