US Treasury Secretary Scott Bessent criticised European countries for failing to impose duties on India while addressing tariffs levied on New Delhi under the Donald Trump administration.
“Our virtue-signalling European allies refused to do it (impose tariffs) because they wanted to sign this big trade deal with India,” Bessent said in an interview with Politico.
His remarks come amid ongoing negotiations between the European Union (EU) and India on their free trade agreement (FTA), which is likely to conclude on 27 January (Tuesday), according to a Reuters report.
The agreement will likely result in reduced tariffs on European cars and wine and an expanded market for the Indian electronics, textiles and chemicals sectors, the report said.
Tensions between the US and its European allies arose over Trump’s plans to acquire Greenland. Earlier, the US President threatened to impose tariffs on European countries, then backed down.
Accusations against Europe
Bessent alleged that Europe is financing Russia’s war through the purchase of oil refined in India.
“But in the ultimate act of irony and stupidity, guess who was buying the refined products from the Indian ….refineries made from Russian oil. the Europeans. They… are financing the war against themselves,” he said.
When questioned about calling the Europeans “stupid”, Bessent said, “I said there was an act of stupidity.”
Tariffs on India have been a success, says Bessent
US Treasury Secretary highlighted that there is a “path” to eliminate the 25% tariff on New Delhi’s imports of Russian oil.
Trump imposed 50% tariffs on India, including a 25% tariff on its Russian oil purchases, impacting the bilateral relationship.
Describing the tariffs imposed on India as a “success,” Bessent said, “We put 25% tariffs on India for buying Russian oil. And the Indian purchases by their refineries of Russian oil have collapsed. So that is a success. The tariffs are still on. The 25% Russian oil tariffs are still on.”
He added, “I would imagine that there is a path to take them off. So that’s a check and a huge success.”
India increased Russian oil imports after Ukraine war, claims Bessent
According to Bessent, India started importing and refining more oil from Russia after the invasion of Ukraine.
“Before the Ukraine invasion, approximately 2 per cent or 3 per cent of Indian oil that went into their refineries came from Russia. The oil was sanctioned. It got deeply discounted and moved up into the high teens- 17,18,19 per cent was being refined. Huge profits from the refiners,” he said.
India called the US action “unfair, unjustified, and unreasonable,” reaffirming that its energy policy is driven by its national interests, PTI reported.