Tensions Mount in India-US Relations Over Russian Oil Resale

US Treasury Secretary Scott Bessent accused India of profiteering by reselling Russian oil while sparing China. His comments come amid tensions as President Trump imposed tariffs on India for Russian oil purchases. India and US are negotiating a bilateral trade agreement, with talks ongoing amid the strained relations.

US Treasury Secretary Scott Bessent has sparked controversy by accusing India of profiteering through the resale of Russian oil while seemingly giving China a pass for similar actions. Bessent argues that China's diversification strategy accounts for a minimal increase in its Russian oil imports, whereas India's have surged by over 40%, raising political and economic tensions with the US.

Tensions between India and the US were already high after President Donald Trump announced heavy tariffs on India, including a significant percentage on its Russian oil imports, set to take effect from late August. India has condemned these tariffs as unjustified, emphasizing its commitment to national interests and economic security amid global uncertainty.

Amid this energy-related discord, ongoing negotiations for a bilateral trade agreement are set against a backdrop of strained diplomacy. India-US discussions on trade liberalization are progressing, but the sixth round of negotiations was recently postponed, reflecting the challenges and complexities in diplomatic and economic relations between the two countries.