New Delhi, Jan 27: US Treasury Secretary Scott Bessent has suggested a possible opening for removing trade penalties against India, even as he remains critical of European trade maneuvers. The US currently maintains a 25 percent tariff on Indian goods specifically tied to the country’s energy relationship with Russia, though recent data suggests those ties are weakening.
During an interview on the sidelines of the World Economic Forum, Bessent noted that the punitive measures have been effective in altering trade patterns. He suggested that the path toward lifting these duties depends on continued shifts in how India sources its raw materials.
“Indian purchases by their refineries of Russian oil have collapsed. So that is a success,” Bessent said, though he cautioned that “the tariffs are still on.”
The Secretary used the platform to contrast US policy with recent European actions, specifically the upcoming free trade pact between the EU and India. He argued that European governments are exploiting loopholes by purchasing Indian-refined products that were originally sourced from Russia, undermining the collective sanctions regime.
“The Europeans signed a trade deal with India,” Bessent said during a separate broadcast. “The Russian oil goes into India, the refined products come out, and the Europeans buy the refined products.”
This dynamic has led to accusations from Washington that Europe is “financing the war against themselves” by sustaining the demand for Russian-linked oil products. The US administration has consistently called for a more unified front in decoupling from Russian energy to bring an end to the hostilities in Ukraine.
Bessent stated that the United States remains committed to a negotiated settlement and expressed confidence in the administration’s ability to navigate the geopolitical crisis. “We will eventually end” the war, he said, mentioning that current trade pressures are a necessary component of that broader strategy.
