Europe Refuses to Impose Tariffs on India Over Russian Oil, Deal Deals Blow to Trump

Washington/Brussels, January 24, 2026 – Despite pressure from the United States, European nations have refused to impose tariffs on India over its purchase of Russian oil, delivering a diplomatic setback to former President Donald Trump’s administration. The revelation was made by U.S. Treasury Secretary Scott Bessent in a recent interview.

Trump’s Tariff Strategy on India

Under Trump’s administration, India faced an additional 25% tariff specifically targeting Russian oil imports, bringing the total U.S. tariff on India to 50%—comprising 25% general trade tariffs and 25% related to Russian oil purchases. However, Bessent revealed that Europe chose not to follow suit, citing its interest in a major trade deal with India.

“Our European partners declined to impose tariffs on India for buying energy from Russia because they want to secure a significant trade deal with India,” Bessent said. He added that prior to the Ukraine war, India purchased only 2–3% of its oil from Russia, but post-invasion, India began buying large quantities of discounted Russian crude.

Europe Ended Up Funding Its Own War

Bessent also noted that as Indian oil companies ramped up purchases of Russian crude, European nations began buying oil from these companies, effectively financing the conflict in Ukraine. When asked whether this was a strategic misstep, Bessent replied, “I believe it was foolish.”

The remarks come ahead of a landmark trade agreement between Europe and India next week, hailed by European leaders as the “Mother of All Trade Deals.” The deal underscores Europe’s willingness to prioritize long-term economic partnerships over U.S. pressure.

India Stands Firm on Oil Purchases

Bessent’s comments highlight U.S. frustration, as India has resisted yielding to trade pressures despite a 50% tariff. Attempts at a bilateral trade deal between the U.S. and India have repeatedly stalled over the past several months. India has emphasized that it will continue to purchase oil based on its own strategic needs and national interests, signaling an independent approach to energy security and international trade.