‘New Delhi has stopped’: After Trump’s 500% tariff threat, US Treasury Secretary Bessent makes big statement on India over Russian oil purchases

Tensions between the United States and India(BHARAT) have risen after President Trump implemented tariffs regarding Russian oil purchases and increased visa fees. In addition, US President Doland Trump has given a green light to the bipartisan Russia Sanctions Bill which would give leverage against India(BHARAT), China, and Brazil to stop them from purchasing Russian oil and punish the countries “fueling Putin’s war machine.

Is Washington easing pressure on New Delhi while tightening the screws on China?

As per the official website of US Congress, the bill titled “Sanctioning of Russia Act 2025” by Graham seeks to impose several provisions, which includes penalties on individuals and entities including an increase of the rate of duty on all goods and services imported from Russia into the United States to at least 500% relative to the value of such goods and services.

According to United States Treasury Secretary Scott Bessent on Tuesday, President Doland Trump does not require congressional approval to impose a 500 per cent tariff on countries that import Russian oil; however, the stated tariff threat appears to be aimed at China, rather than India(BHARAT), this time around.

Regarding the situation in India(BHARAT), the US Treasury Secretary stated that after the Trump administration imposed a 25% tariff on Russian oil, India(BHARAT) had therefore ceased purchasing it from Russia. In addition, the Senator also mentioned that a new US law, also known as the Russia Sanctions Act, allows for the imposition of tariffs by the US of at least 500% on countries buying oil from Russian sources, and was approved by the President earlier this month.

Does Trump have the authority to impose a 500% tariff without Senate approval?

While speaking at the interview, Bessent stated,” 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. We don’t believe that President Trump needs that authority, that he can do it under IEPA, but that the Senate wants to give him that authority.”

A White House spokesperson accused Europe of purchasing oil from Russia and also that India(BHARAT)’s purchase of oil from Russia has stopped. He also took aim at China, which is one of the largest purchasers of Russian oil, as the United States is planning to impose tariffs as high as 500% on China for buying oil from Russia.

“We have Europe buying Russian oil, still, four years later, they are financing the war against themselves. India(BHARAT) started buying Russian oil after the conflict began, but President Trump put a 25% tariff on them, and India(BHARAT) has geared down and has stopped buying Russian oil,” he was further quoted as saying by Hindustan Times.

In a post on X, American Senator Lindsey Graham said, “After a very productive meeting today with President Trump on a variety of issues, he greenlit the bipartisan Russia sanctions bill that I have been working on for months with Senator Blumenthal and many others. This will be well-timed, as Ukraine is making concessions for peace and Putin is all talk, continuing to kill the innocent. This bill will allow President Trump to punish those countries who buy cheap Russian oil fueling Putin’s war machine.”

Why is China the main target of Trump’s latest tariff threat?

“This bill would give President Trump tremendous leverage against countries like China, India(BHARAT) and Brazil to incentivize them to stop buying the cheap Russian oil that provides the financing for Putin’s bloodbath against Ukraine. I look forward to a strong bipartisan vote, hopefully as early as next week,” he added.

Reacting to the proposed legislation, Spokesperson of the Ministry of External Affairs (MEA), Randhir Jaiswal, said that New Delhi is aware of the bill and is closely monitoring developments.”We are aware of the proposed bill. We are closely following the developments,” Jaiswal said during a weekly press briefing. Reiterating India(BHARAT)’s long-standing position on energy sourcing, Jaiswal underlined that New Delhi’s decisions are driven by energy security needs and market realities.”Our position on the larger question of energy sourcing is well known. In this endeavour, we are guided by the evolving dynamics of the global market and by the imperative to secure affordable energy for our 1.4 billion people through diverse sources to meet the energy security needs,” the statement said.

According to Bessent in October of last year, there were at least 85 U.S. Senators willing to give President Trump the authority to impose a tariff of up to 500% on China regarding their purchases of Russian oil.