US Treasury Secretary Scott Bessent has said European countries refused Washington’s request to impose additional tariffs on India and China over their purchases of Russian oil. His remarks have reignited debate over international sanctions, energy trade, and the economic pressure being applied to Russia over the war in Ukraine.
In an interview with NBC, Bessent questioned why the United States should carry the economic burden of pressuring Moscow if its European allies were unwilling to join the proposed measures.
The comments came after US President Donald Trump temporarily waived specified sanctions and tariff provisions under the Lindsey O. Graham Sanctioning Russia and Iran Act of 2026, giving his administration 60 days to assess the situation.
The development is particularly important for India, which imports substantial quantities of crude oil from overseas, including Russia. It also highlights the competing interests of energy security, international trade, and diplomatic relations.
What Did Scott Bessent Say About Europe, India and China?
Scott Bessent said the Trump administration had approached European allies during the spring to seek coordinated action against countries purchasing Russian energy.
He stated that European governments declined the request to impose secondary tariffs on India and China.
Bessent questioned why the United States should bear the economic burden of pressuring Russia without similar action from its allies.
He also criticised European countries for continuing to purchase Russian energy while supporting Ukraine. To illustrate his argument, he referred to shipments from Russia’s Yamal facility during the first half of the year.
According to Bessent, 140 cargoes left the facility during that period, and 136 went to European destinations, including Belgium, Spain, France, and the Netherlands. He put the value of those shipments at more than $8 billion.
These figures were cited by Bessent during the interview and form part of his argument about the difference between European energy purchases and Washington’s proposed tariff policy.
Read the original report from Moneycontrol.
Why Did the United States Want Tariffs on India and China?
The US proposal was intended to increase economic pressure on Russia by targeting countries that continued purchasing Russian-origin crude oil and natural gas.
Revenue from energy exports is an important source of income for Russia. Washington has argued that reducing this revenue could increase pressure on Moscow to end the war in Ukraine.
India and China are among the major buyers of Russian energy. Under the Lindsey O. Graham Sanctioning Russia and Iran Act of 2026, certain qualifying purchases could have triggered tariffs of up to 100% on goods imported into the United States from the countries covered by the law.
Such tariffs could raise the cost of affected exports entering the American market. The actual impact would depend on the products covered, the relevant legal conditions, and whether the measures were applied.
However, the law did not automatically impose a 100% tariff on every country purchasing Russian oil. Its application depended on specified conditions and presidential action.
Why Did European Countries Refuse to Join the Proposed Tariffs?
According to Bessent, European allies declined Washington’s request for coordinated secondary tariffs on India and China.
His public remarks did not establish one single reason shared by every European government. The refusal should therefore be understood as Bessent’s account of the diplomatic discussions rather than a complete explanation of each country’s decision.
The issue highlights a wider challenge in international sanctions policy: governments may agree on the objective of pressuring Russia while disagreeing about the economic costs and methods.
Countries that rely on imported energy must also consider fuel prices, industrial costs, trade relationships, and the effects of restrictions on their own economies.
Bessent argued that Europe should take a greater share of the economic burden if the goal is to reduce Russia’s energy revenue.
European governments’ individual policies and purchases, however, can differ, so the Treasury secretary’s criticism should not be treated as a complete account of every country’s position.
Trump Temporarily Waives Specified Russia-Related Measures
The debate followed Trump’s October 16, 2026, executive order waiving the application of specified sanctions, restrictions, and tariff provisions under the Graham Act.
The administration said the waiver would give officials time to assess the situation and the potential economic consequences of implementing the measures.
Bessent referred to a 60-day period during which the administration could evaluate developments before deciding how to proceed.
The distinction is important: a temporary waiver does not repeal the law itself or automatically cancel every existing US sanction against Russia.
The decision also does not guarantee that the covered provisions will remain suspended permanently. Future government action and the terms of the relevant order will determine what happens next.
For further context, read Moneycontrol’s explainer on the changing US tariff threat over Russian oil.
What Does the Decision Mean for India?
India’s position is closely connected to its dependence on imported crude oil and its need to maintain reliable energy supplies.
Indian refiners have purchased Russian crude partly because of commercial considerations, including price and availability. These purchases have also become a subject of discussion in India’s trade relationship with the United States.
A potential tariff of up to 100% on covered Indian exports could have increased the cost of selling certain products in the American market.
The temporary waiver reduces the immediate threat posed by the specified provisions, but it does not automatically remove every US tariff or trade restriction affecting India.
1. Relief From an Immediate Tariff Threat
The waiver gives India and its exporters temporary breathing room from the covered tariff provisions.
If the measures had been applied, affected Indian goods could have become more expensive for American importers. That might have affected demand, commercial contracts, and exporters’ competitiveness.
The practical impact would vary by industry and product.
2. Continued Focus on Energy Security
India imports a large share of the crude oil it consumes. Maintaining reliable supplies at manageable prices is therefore an important consideration for policymakers and refiners.
A pause in the specified tariff measures may provide more flexibility in evaluating energy purchases, although commercial decisions will continue to depend on prices, supply availability, shipping, and applicable regulations.
3. India-US Trade Relations Remain Important
The waiver may reduce one immediate source of uncertainty, but broader trade negotiations and other tariff measures remain separate matters.
Businesses should not assume that every trade issue between India and the United States has been resolved.
Marco Rubio Says India Cannot Immediately Stop Russian Oil Imports
US Secretary of State Marco Rubio has also addressed the issue, describing India as an important ally and saying Washington needed to consider its energy requirements before imposing tariffs or sanctions.
Rubio said the proposed measures affected countries such as India in addition to Russia. He added that the administration wanted to evaluate the implications for the US and global economies.
He also noted that countries such as India had diversified their energy supplies but could not immediately stop importing Russian energy.
Rubio’s comments illustrate the range of considerations facing US policymakers. The administration wants to put pressure on Russia, but it must also consider the effects of energy restrictions on trading partners and global markets.
Read The Economic Times’ coverage of the 60-day pause and European response.
How Could the Dispute Affect Global Oil Prices?
International oil prices depend on several factors, including supply, demand, geopolitical risks, production decisions, shipping conditions, and currency movements.
Sanctions and tariff threats can influence market expectations because they may affect the availability and cost of energy supplies.
If restrictions reduce the number of buyers or make transactions more difficult, trade flows may change. Conversely, a pause in certain restrictions can reduce immediate uncertainty for companies planning purchases.
However, the US waiver does not automatically mean that oil prices will fall. Prices may still rise or decline because of developments unrelated to the decision, including production changes, regional conflicts, and shifts in global demand.
For India, the price of imported crude is only one factor affecting domestic fuel costs. Exchange rates, refining expenses, taxes, and pricing decisions also play a role.
What Happens Next in the Russia Sanctions Dispute?
The next stage will depend on how the US administration uses the 60-day assessment period and whether it introduces further measures after reviewing the economic and diplomatic consequences.
Several developments will be important to watch:
- Whether Washington seeks renewed coordination with European allies.
- Whether the US continues the waiver or changes the application of the covered measures.
- How India and China respond to further trade or sanctions decisions.
- Whether changes in Russian energy purchases affect global oil supply and prices.
- How the dispute influences the wider Russia-Ukraine conflict and international negotiations.
The situation remains fluid, and the waiver should not be interpreted as a permanent change in US policy.
Frequently Asked Questions (FAQs)
1. What did Scott Bessent say about Europe and Russian oil?
Bessent said European allies refused Washington’s request to impose secondary tariffs on India and China over their purchases of Russian oil. He questioned why the United States should bear the economic burden alone.
2. Why did the United States want tariffs on India and China?
The proposed measures were intended to increase economic pressure on Russia by targeting countries purchasing Russian-origin energy. The objective was to reduce the revenue Russia receives from energy exports.
3. Has Trump cancelled the Russia-related tariff law?
No. Trump temporarily waived the application of specified provisions under the Lindsey O. Graham Sanctioning Russia and Iran Act of 2026. The waiver does not repeal the law itself.
4. How could the waiver benefit India?
It temporarily reduces the threat posed by the specified tariff provisions that could have affected Indian exports to the United States. Other existing tariffs and trade restrictions may still apply.
5. Why is India continuing to buy Russian oil?
India’s energy decisions are influenced by the need to secure reliable crude supplies, commercial prices, and domestic demand. The exact mix of suppliers can change as market conditions and government policies evolve.
6. Did European countries stop buying Russian energy?
Bessent said European destinations received most of the cargoes he cited from Russia’s Yamal facility during the first half of the year. His remarks do not mean every European country has the same energy policy or purchases the same products.
7. Will the waiver lower petrol and diesel prices in India?
Not necessarily. Domestic fuel prices depend on global crude prices, exchange rates, taxes, refining costs, and pricing decisions. The waiver alone does not guarantee lower fuel prices.
8. What should readers watch next?
Important developments include the US administration’s decisions after the 60-day assessment period, any renewed coordination with European governments, and changes in trade and energy policy affecting India, China, and Russia.
Conclusion
Scott Bessent’s remarks have brought renewed attention to disagreements between the United States and its European allies over how to pressure Russia through energy-related tariffs.
The Treasury secretary said European governments declined Washington’s request to impose secondary tariffs on India and China, arguing that the United States should not shoulder the economic burden alone.
For India, the temporary waiver of specified tariff provisions offers relief from an immediate risk to covered exports. However, the longer-term impact will depend on US policy decisions, global energy markets, and developments in the Russia-Ukraine conflict.
The episode demonstrates how energy security, international trade, and geopolitical strategy remain closely connected.
