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EU refused to impose tariff on India due to ‘big trade deal’, Scott Bessent says
US Treasury Secretary Scott Bessent said the 25% US tariffs on India over Russian oil purchases led to a sharp drop in Indian imports from Russia.
US Treasury Secretary Scott Bessent recently said that US tariffs on India have led to a reduction in Indian purchases of Russian oil, while the European allies refused to impose such tariffs, as they wished to sign a “big trade deal” with New Delhi.
In an interview with Politico's Dash Burns, Bessent talked about Greenland and America's role in the global economy.
“We put 25% tariffs on India for buying Russian oil, and the Indian purchases by their refineries of Russian oil have collapsed. The 25 per cent Russian oil tariffs are still on. I would imagine that there is a path to take them off, so you know that that’s a check and a huge success, Bessent said in the interview.
He also pointed out in the interview that the “virtue signalling European allies” refused to impose tariffs as they wanted to sign a “big trade deal” with India.
Bessent explained that, prior to the Ukraine invasion, approximately 2-3% of India's oil imports came from Russia. However, after the invasion, the share of Russian oil in Indian refineries went up to 18-19 %.
Also read: US may cut India tariffs by 25%, hints Trump aide, says 'Russian oil purchases have collapsed'
He said that Europeans were buying the Russian oil from Indian refineries, calling it “the ultimate act of irony and stupidity” as Europeans were financing “the war against themselves.”
India-US tariff tensions and trade deal with EU
In August last year, Trump imposed a 25% additional tariff on India, citing India's energy ties with Russia. In addition to tariffs on India, the US also imposed sanctions on Russian oil companies.
In January this year, Bessent claimed that New Delhi had stopped buying Russian oil after the imposition of 25% tariffs.
Recently, European Commission President Ursula von der Leyen announced that the India-EU Free Trade Deal is on the verge of being finalised, calling it the “mother of all deals”. The deal would be a crucial milestone in deepening ties with the EU.
The agreement would be India's ninth trade deal in 4 years, and the FTA could help in restoring competitiveness lost after the EU began withdrawing tariff concessions under its Generalised System of Preferences (GSP).
