US Slams India for Allegedly Profiteering from Russian Oil Imports During Global Conflict

U.S. Treasury Secretary Scott Bessent recently criticised India for significantly increasing its purchases of Russian oil amid the ongoing conflict in Ukraine. In an interview with CNBC, Bessent highlighted that Russian oil now makes up 42% of India's total oil imports, a sharp rise from less than 1% before the war. This contrasts with China, whose Russian oil imports rose modestly from 13% to 16%.

President Donald Trump has responded by imposing an additional 25% tariff on Indian goods, citing India's actions as a reason. This brings the total tariffs announced since his tenure began to 50%. Trump believes these tariffs are pressuring Russian President Vladimir Putin to consider ending the conflict in Ukraine.

U.S.-India Trade Tensions

The relationship between the U.S. and India has been strained due to these tariffs. There were earlier predictions of a trade agreement between the U.S. and Prime Minister Narendra Modi's government that would have reduced tariff rates. However, these hopes have been dashed by recent developments.

In response to U.S. concerns over agricultural tariffs, India temporarily lifted an 11% import duty on cotton until September 30. This move is seen as an attempt by New Delhi to address some of Washington's grievances.

China's Different Stance

Bessent explained why similar tariffs were not imposed on China despite its increased purchase of Russian oil. He noted that China's situation is "completely different" because it has been a long-term buyer and hasn't engaged in what he termed as "Indian arbitrage," which involves buying cheap Russian oil and reselling it at higher prices.

A planned visit by U.S. trade negotiators to New Delhi was abruptly cancelled, which further complicates the trade dynamics between the two nations. The visit was initially scheduled for August 25-29 but was called off without prior notice.

Bessent's comments reflect growing tensions over India's economic strategies during the Ukraine conflict. The U.S.'s stance indicates disapproval of India's approach, especially regarding its dealings with Russia amidst global geopolitical shifts.

FAQs

What did U.S. Treasury Secretary Scott Bessent criticize India for?

Scott Bessent criticized India for significantly increasing its purchases of Russian oil amid the ongoing conflict in Ukraine.

How much of India's oil imports now come from Russia?

Russian oil now makes up 42% of India's total oil imports, a sharp rise from less than 1% before the war.

What action did President Donald Trump take in response to India's oil purchases?

President Donald Trump imposed an additional 25% tariff on Indian goods, bringing the total tariffs announced since his tenure began to 50%.

What was India's response to U.S. concerns over agricultural tariffs?

India temporarily lifted an 11% import duty on cotton until September 30 in an attempt to address some of Washington's grievances.

Why were tariffs not imposed on China despite its increased purchase of Russian oil?

Tariffs were not imposed on China because it has been a long-term buyer of Russian oil and hasn't engaged in what Bessent referred to as "Indian arbitrage."