US Treasury Secretary Scott Bessent suggested on Tuesday that India might be spared from the proposed 500% tariff on Russian oil buyers. He said India had stopped purchasing oil from Russia. His comments came during an interview at the World Economic Forum in Davos.
Bessent explained that India began buying Russian oil after the Ukraine conflict started. Trump had already imposed a 25% tariff, and India then reduced its purchases and eventually stopped. He contrasted India’s actions with Europe, which he said is still buying Russian oil four years later, effectively financing the war. He also noted that China remains a major buyer of both Russian and Iranian oil.
The 500% tariff is part of a bill introduced by Senator Lindsey Graham. It is still under Senate consideration. Bessent said the proposal could give Trump authority to impose the levy, though it is ultimately up to the Senate to approve it. He hinted that Trump might be able to act under existing law even without full Senate approval.
Senator Graham has said the bill would give Trump strong leverage over countries like China, India, and Brazil to stop buying cheap Russian oil. According to Graham, the goal is to cut off funds that support Russia’s actions in Ukraine.
India has responded cautiously. The Ministry of External Affairs said it is aware of the bill and is monitoring developments. MEA spokesperson Randhir Jaiswal added that India’s energy strategy considers global market conditions and aims to provide affordable energy for its 1.4 billion people.
The situation highlights growing global tension over energy and sanctions as the US pushes countries to limit trade with Russia while balancing domestic energy needs.