US Hits India With 25% Tariffs Over Russian Oil Profits
U.S. Accuses India of Profiting From Russian Oil, Trump Imposes 25% Tariffs
According to CNBC, Bessent told “Squawk Box” that India’s oil dealings with Russia amount to profiteering, with some of the country’s wealthiest families raking in an estimated $16 billion in excess profits.
Since Russia invaded Ukraine in 2022, India has emerged as Moscow’s largest oil buyer. In July, the country imported 1.5 million barrels per day (bpd), overtaking China, which imported roughly 1 million bpd, according to Kpler data.
Sources say India’s state-run refiners have now paused purchases of Russian crude. The U.S. claims that India processes Russian oil into products such as gasoline and diesel, which are then sold to markets—including Europe—that have imposed sanctions on Moscow. This comes after India sharply increased imports of Russian oil, which were nearly nonexistent before the war.
In response, former President Donald Trump announced a 25% tariff on Indian exports to the U.S., set to take effect next week. These so-called “secondary tariffs” are intended to pressure Russia into negotiating a settlement with Ukraine.
Bob McNally, president of Rapidan Energy and a former advisor to President George W. Bush, told CNBC that India’s rise as a Russian oil buyer was initially encouraged by the U.S. The Biden administration had urged India to buy Russian crude to stabilize global oil prices after Western bans risked triggering a spike, which could have driven up gasoline costs in the U.S. McNally emphasized that India’s participation was a key part of a U.S.-European strategy to cap Moscow’s oil revenue while keeping the global supply steady.
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