US Treasury Secretary hints at lifting 25% tariff on India's Russian oil purchases
New York (The Uttam Hindu): Amid reports that talks on a Free Trade Agreement (FTA) between the European Union and India are in the final stages, the US has hinted at lifting the 25 percent tariff imposed on India. US Treasury Secretary Scott Bessant said on Friday that there is scope for lifting the 25 percent tariff imposed on India for buying oil from Russia, as Indian refineries have "completely stopped" buying Russian oil. He described these sanctions imposed on India as a "success" for the US.
"We imposed a 25 percent tariff on India buying oil from Russia. Now, Indian refineries have completely stopped buying Russian oil. This is a major success. The 25 percent tariff on Russian oil is still in place, but I think there's room to remove it," Besant said in an interview. It's worth noting that US President Donald Trump has imposed a total of 50 percent tariffs on India, including a 25 percent tariff on purchasing oil from Russia. This has strained bilateral relations between the two countries.
Besant criticized European countries on this issue, saying that Europe refused to impose tariffs on India because it wanted to finalize a major trade deal with India. He called Europe a "sham ally." He alleged that before the Russian invasion of Ukraine, the share of Russian oil in India's refineries was only two to three percent, but later it increased to 17 to 19 percent. According to him, Indian refineries made huge profits by purchasing Russian oil at cheap prices.
Besant also alleged that European countries indirectly funded Russia's war by purchasing Russian oil products refined in India. He called this a "stupid move." Meanwhile, negotiations on a free trade agreement between India and the European Union are expected to be completed soon. This statement comes at a time when a bill is being discussed in the US Congress that would impose a 500 percent tariff on countries purchasing Russian oil.
India's Foreign Ministry spokesperson Randhir Jaiswal said that India is aware of the bill and is closely monitoring developments. Bessant also said that the US is reshaping the global economy. Tariffs are generating billions of dollars in revenue and driving manufacturing and factories back to the US. He said that President Trump will visit Beijing in April, while Chinese President Xi Jinping may visit the US in the summer. It is likely that the two leaders could meet four times this year.