US says more tariffs on Russian oil buyers
Cooperation and future transatlantic priorities.
US Treasury Secretary Warns Russian Economy Could “Collapse” Under New Sanctions, Trump Slaps 50% Tariff on India’s Oil Imports
Washington: US Treasury Secretary Scott Bessent on Sunday said Russia’s already strained economy could face a “collapse” if Washington, together with the European Union, decides to widen secondary sanctions on countries continuing to buy crude oil from Moscow.
That conversation was followed by another call between von der Leyen and Bessent himself on Friday, during which they discussed what coordinated steps the US and the EU might take to further tighten the screws on Moscow.
Bessent underlined that unity between Washington and Brussels would be crucial.
The Trump administration, meanwhile, has already moved aggressively on the sanctions front. In a dramatic escalation, it imposed an additional 25% tariff on India for its continued purchases of Russian crude. This new measure comes on top of the 25% reciprocal tariffs announced earlier, effectively doubling duties on Indian oil imports to 50%, with effect from August 27.
President Trump himself addressed the issue in the Oval Office on Friday.
Trump’s comments highlight the difficult balancing act his administration faces: maintaining personal ties with Modi, while taking a hard line on India’s energy trade with Moscow, which US officials argue is undermining Western efforts to weaken the Russian war machine.
“Every barrel purchased at discounted rates still sends money into Moscow’s coffers,” Navarro told reporters last week. “That money is being used to fund aggression in Ukraine.”
India, for its part, has rejected these charges in strong terms. Officials in New Delhi called the new US tariffs “unjustified and unreasonable,” stressing that India’s energy policy is driven primarily by national interest and market realities. “Our crude procurement reflects the needs of our growing economy and the welfare of our citizens,” a spokesperson for India’s Ministry of External Affairs said, reiterating that the country would not accept external pressure to alter its sourcing decisions.
New Delhi has also argued that its imports of Russian oil help stabilize global energy markets by keeping supplies flowing. Without India as a buyer, analysts note, Russian crude would either be forced off the market or rerouted under even less transparent conditions, potentially raising global prices further.
Still, Washington seems determined to keep pressing the point. Trump administration officials say the tariffs are meant not only to penalize India but also to send a broader message to other nations still engaging with Russia in the energy sector: align with the West or face costs.
As the standoff escalates, observers warn that US-India relations are entering one of their most fraught periods in over two decades. The personal warmth between Trump and Modi may help prevent a complete rupture, but policy disagreements — especially on Russia — remain deep.
For now, the question is whether New Delhi will stand firm on its oil strategy or adjust course under mounting Western pressure. With sanctions tightening, tariffs rising, and diplomatic calls intensifying, the coming weeks could prove decisive not only for India-US ties but also for the global effort to curb Russia’s war chest.