Davos (Switzerland): US Treasury Secretary Scott Bessent at Davos on Friday (local time) hinted that the additional 25% tariffs on India might be removed after India’s purchases of Russian oil have significantly dropped due to a 25% tariff imposed by the US, calling it a “huge success.”
He made the remarks during a conversation with Politico, amid a geopolitical landscape surrounding Indian oil imports, US tariffs, and EU trade ambitions that has reached a critical flashpoint.
Bessent told Politico that Indian refinery purchases of Russian oil have “collapsed” due to US tariffs, hinting that, while tariffs remain in place, a diplomatic “path” exists to remove them, provided India shifts its energy sourcing and asserted that these trade measures provide tangible benefits to the American economy.
“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 told Politico.
This comes amid discussions in the US Congress on a proposed bill that could impose a 500% duty on countries buying Russian oil, while India has stated it’s guided by the need for “affordable energy” for its population.
New Delhi remains firm on its “India First” energy policy, despite a proposed US Congressional bill that could hike duties to 500% and emphasised that India’s priority is securing affordable energy for its 1.4 billion citizens.
Reacting to the proposed legislation, Spokesperson of the Ministry of External Affairs (MEA), Randhir Jaiswal, said that New Delhi is aware of the bill and is closely monitoring developments.
“We are aware of the proposed bill. We are closely following the developments,” Jaiswal said during a weekly press briefing.
While acknowledging the legislative threats from Washington, India continues to balance its strategic autonomy with global market realities.
His remarks come days after US Senator Lindsey Graham said in January that US President Donald Trump has given a green light to the bipartisan Russia Sanctions Bill, which would give leverage against India, China, and Brazil to stop them from purchasing Russian oil and punish the countries “fuelling Putin’s war machine”.
Bessent also criticised European countries for buying refined Russian oil from India, saying they’re “financing the war against themselves,” labelling their trade behaviour an “act of irony and stupidity.”
He argued that by purchasing refined petroleum products from India (made from Russian crude), Europe is indirectly financing Russia’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. The oil was sanctioned. It got deeply discounted and moved up into the high teens- 7, 18, 19% was being refined. Huge pro, huge profits from the refiners. 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”, Bessent told Politico.
The EU and India are set to discuss a comprehensive strategic agenda, with a Free Trade Agreement in the works, described as “the mother of all deals” by European Commission President Ursula von der Leyen, a historic agreement covering a market of 2 billion people and 25% of global GDP.
Bessent suggested that the EU is “virtue signalling” by avoiding similar tariffs on India to protect the upcoming EU-India Free Trade Agreement (FTA). “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,” he added.
The European Union and India will hold the 16th summit in New Delhi, where a new EU-India comprehensive strategic agenda is expected to be adopted.
von der Leyen is scheduled to visit New Delhi next weekend to finalise the deal, signalling that Europe views India as an indispensable economic partner, despite the Russian oil controversy.
Addressing the World Economic Forum in Davos, she stressed Europe’s intent to expand trade and international cooperation. “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,” von der Leyen said.
Placing the proposed India agreement in Europe’s larger global trade approach, von der Leyen said Europe remains open to doing business with partners worldwide. (ANI)
