'Because they wanted a trade deal,' Bessent criticises Europe over India tariffs at Davos 2026

Bessent praises tariffs, criticises Europe

US Treasury Secretary Scott Bessent has claimed that European allies opted against joining joint tariffs on India’s imports of Russian oil in order to prioritise a long-negotiated free trade agreement expected to be finalised next week.

Bessent’s pointed remark comes ahead of European Commission President Ursula von der Leyen’s visit to India, aimed at sealing what she has described as “the mother of all deals.”

Describing US efforts to enforce 25 per cent penalties on third-country buyers since 2025 as a “success,” Bessent told Politico: “I will also point out that our virtue signalling European allies refused to do it. Because they wanted to sign this big trade deal with India.”

He further accused Europe of “financing the war against themselves” by purchasing Russian oil products refined in India. “In the ultimate act of irony and stupidity, guess who was buying the refined products?” Bessent said. “The Europeans,” he added.

During the interview, the Treasury Secretary also suggested that the 25 per cent tariff on India could potentially be lifted. “Our 25 per cent tariff has been a huge success. Indian purchases of Russian oil have collapsed. The tariffs are still on. I would imagine there is a path to take them off now,” he said.

The US currently imposes 50 per cent tariffs on India, including the 25 per cent penalty targeting Russian oil imports. New Delhi has repeatedly called the measures “unfair, unjustified and unreasonable,” while maintaining that its energy policy is guided by national interest.

Meanwhile, Republican Senator Lindsey Graham has proposed a bill to impose a 500 per cent tariff on secondary purchases and reselling of Russian oil. Speaking about the proposal on Fox News, Bessent said: “We will see whether that passes. We don't believe that President Trump needs that authority, that he can do it under IEEPA, but that the Senate wants to give him that authority.”

In December, India fell to third place among buyers of Russian fossil fuels after Reliance Industries Ltd and state-owned refiners sharply reduced crude oil imports from Moscow.