India might not face Trump's 500% tariff on Russian oil
What's the story
US Treasury Secretary Scott Bessent has suggested that India could be exempt from a proposed 500% tariff on Russian oil purchases. The proposal, introduced by Senator Lindsey Graham, is currently before the Senate. Speaking at the World Economic Forum in Davos, Bessent said while India was once a buyer of Russian oil, it has now "geared down" and "stopped" buying it altogether.
Tariff implications
Bessent's remarks on India's stance toward Russian oil
Bessent commented on India's position on Russian oil purchases. He said, "India started buying Russian oil after the conflict began, but President Trump put a 25% tariff on it, and India has geared down and has stopped buying Russian oil." The Treasury Secretary also criticized Europe for continuing to buy Russian oil despite the ongoing conflict. Bessent also touched upon China's oil purchases, saying "China is a very large buyer of Russian oil, as they are of Iranian oil."
Bill details
Graham's bill and potential tariff imposition
Bessent said, "On the 500% tariff on the buyers of Russian oil, that is a proposal that Senator Graham has in front of the Senate, and we will see whether that passes." He hinted at Trump's possible unilateral action under IEPA (International Emergency Economic Powers Act) to impose such tariffs. In October last year, Graham claimed 85 US Senators were willing to give Trump authority for imposing these tariffs on countries buying Russian oil.
MEA statement
India's response to proposed tariffs
Responding to Graham's bill targeting India, the Ministry of External Affairs (MEA) said it was aware of the proposal. MEA spokesperson Randhir Jaiswal said earlier this month, "We are fully aware of the proposed bill being discussed, and we are carefully monitoring all related issues and developments connected with it."