India-Russia Oil Trade: US Treasury Secretary Scott Bessent on Tuesday (January 20) claimed that India has reduced its purchases of Russian oil following
US President Donald Trump’s decision to impose tariffs on New Delhi. Bessent made the remarks during a conversation at the World Economic Forum (WEF), where he discussed proposed legislation aimed at imposing steep tariffs on countries maintaining trade relations with Russia. “India started buying Russian oil after the conflict began, but President Trump put a 25 per cent tariff on them, and India has geared down and has stopped buying Russian oil,” the US Treasury Secretary said. The comments were delivered as part of a broader discussion surrounding proposed legislation that would impose tariffs of up to 500 per cent on nations continuing to trade with Russia. New Delhi has acknowledged reports of the proposed US legislation, which would levy punitive tariffs of up to 500 per cent on countries that continue to purchase Russian crude oil. India said it is closely monitoring developments amid increasing pressure from Washington, PTI reported. However, the Indian government has not confirmed any reduction in its Russian oil imports. Bessent also stated that China would no longer be receiving Venezuelan oil, saying, “China is a very large buyer of Russian oil, as they are of Iranian oil, as they were of Venezuelan oil.”
Donald Trump endorses 500% Russia tariff bill
Earlier this month, US Senator Lindsey Graham said that President Donald Trump has approved a bipartisan bill proposing stringent sanctions on Russia. The legislation could also be used to pressure countries such as India, China, and Brazil that continue to purchase Russian oil.According to the official US Congress website, the bill outlines a wide range of penalties targeting Russian individuals and entities. One of its key provisions includes raising import duties on all goods and services from Russia to at least 500 per cent. The bill also authorises action against countries that continue buying Russian oil despite Western sanctions.
Also Read: Donald Trump endorses 500% Russia tariff bill; aims to target India, China, Brazil
25% tariff on countries trading with Iran
Last week, President Trump announced an additional 25 per cent tariff on trade with the US for any country that conducts business with Iran. Iran has historically been subject to multiple rounds of stringent sanctions imposed by Washington.Given its strong trade ties, India is likely to be significantly affected by these policy measures. Trump’s imposition of additional tariffs could result in a combined impact of up to 75 per cent, factoring in a reciprocal 25 per cent US tariff and a further 25 per cent levy linked to India’s continued purchases of Russian crude oil.
Also Read: Trump imposes 25% tariffs on countries trading with Iran; Will India bear the brunt?
