US Treasury Secretary Scott Bessent has accused India of “profiteering” from discounted Russian crude, alleging that New Delhi is engaged in arbitrage trading during the Ukraine war. By contrast, he said China’s position was “entirely different” given its long-standing role as a major buyer of Russian energy.
In an interview with CNBC on Tuesday, Bessent claimed that Russian oil now accounts for 42 percent of India’s total crude imports, compared with less than 1 percent before the conflict. China’s purchases, meanwhile, have risen only modestly—from 13 percent to 16 percent—reflecting what Washington views as a continuation of existing trade patterns.
“India is just profiteering. They are reselling,” Bessent said. “What I would call Indian arbitrage—buying cheap Russian oil, reselling it as product—has just sprung up during the war, which is unacceptable.”
The United States has already imposed a 25 percent tariff on Indian goods, with an additional 25 percent due to take effect on August 27, taking the total hike to 50 percent. Washington has framed the move as a direct response to India’s increased Russian oil purchases.
President Donald Trump has defended the measures as part of a broader effort to increase pressure on Russian President Vladimir Putin to engage in peace talks over Ukraine.
Trump has refrained from imposing similar penalties on Beijing. Instead, he extended a tariff truce with China by 90 days until November 10, capping current tariffs at 30 percent on Chinese imports and 10 percent on US goods. Without the extension, tariffs could have surged to as high as 145 percent, effectively approaching a trade embargo.
Bessent said Washington views China differently because it was already a significant importer of Russian energy before the war. “The situation is completely different with China,” he said.
The dispute has heightened tensions between Washington and New Delhi, stalling progress on a potential trade deal that both governments had earlier indicated was within reach.
India on Tuesday temporarily suspended its 11 percent import duty on cotton until September 30, a move interpreted as a signal of willingness to address some of Washington’s concerns on agricultural tariffs. The decision came shortly after US trade negotiators cancelled a planned visit to New Delhi from August 25–29.
(By arrangement with livemint.com)
