The US Treasury Secretary Scott Bessenet explained on August 20, 2025 local time, why the current tariff is imposed on India rather than China. He explained that the tariffs had already been imposed on China before, so now it's time for India to "taste the bitterness." Bessenet said, "Before the Ukraine war, less than 1% of India's oil came from Russia. Now the proportion has reached 42%." "India has gained $16 billion in excess profits by purchasing Russian oil at low prices and reselling it (to the US, Europe, and Western countries)." "This arbitrage behavior is unacceptable." According to Bessenet, China uses its own oil, so the US can accept it.
Meanwhile, the US claims that India has resumed buying Russian oil after getting discounts. After a short pause, India has resumed purchasing Russian crude oil, with expected delivery in September and October. Russia offered more favorable terms: the discount on Russian oil increased from $1 per barrel to $2.5 per barrel. The First Deputy Prime Minister of Russia, Manturov, stated that Russia continues to supply oil, coal, and petroleum products to India. Manturov also revealed that over 90% of trade between Russia and India has been converted to currency settlement. At the same time, India claimed that China will resume exporting rare earths, fertilizers, and tunnel boring machines to India.
China buys oil for its own use, which does not compete with American oil companies, so it's different. For the US, India acts as a middleman, reducing the sales of high-priced US oil, and it must print India. India is making a fortune, while Russia and the EU are losing out, being cheated by the middleman. For the US, it also believes it has "lost," because cheap Russian oil was not purchased, and the US had planned to sell high-priced oil to Europe, but India got there first. In fact, if India purchases Russian oil, the data shows that one can understand why Trump wants to take action, as India and the US are competing for business, especially in the direction of Europe. Trump is envious, as the money that Western capital used to make is now being made by India. No wonder the US wants to hit India hard! India is the type of person who always seeks cheap deals. In fact, Europe also knows that the oil sold to them by India comes from Russia, but this doesn't stop Europe from sanctioning Russian oil while buying the Russian oil through India's middlemen.
Wanting India to buy US crude oil for processing is too expensive. Even before, the main source of heavy oil imports for the US was Russia. This is why, after the outbreak of the Ukraine war, despite the US claiming to have achieved oil self-sufficiency, diesel prices nearly doubled, as diesel needs to be refined from heavy oil. The cost of shale oil extraction in the US is the highest, around $85 per barrel. To make a profit, it needs to be over $100 per barrel, but who would buy it? Previously, the US imported heavy oil from Venezuela, but when relations with Venezuela deteriorated, they switched to importing from Russia. After the Ukraine war, both sources were cut off, causing diesel prices to almost double, greatly increasing inflation and directly affecting the election. As a result, the US had no choice but to go back and ask Venezuela to resume supplies. Before the war, China accounted for 13% of Russia's oil imports, and now it's 16%; India was 1% before the war, and now it has risen to 42%, so India is profiting immensely. For the US and Trump, the proportion of Russian oil imported by China is based on actual needs for energy security and economic development, and it cannot be forced or negotiated. Pressuring China in this direction would not be effective, and could even lead to Chinese retaliation. India is different; it's easier to control and brings quick returns.
Original article: www.toutiao.com/article/1841012422249737/
Statement: The article represents the views of the author.