U.S. Treasury Secretary Scott Bessent said India is “just profiteering” from the Ukraine-era surge in discounted Russian crude, telling CNBC that Russian oil now accounts for 42% of India’s imports, up from less than 1% before Moscow’s 2022 invasion. He estimated Indian refiners and trading houses have pocketed about $16 billion by buying cheap Russian barrels, processing them into fuels such as gasoline and diesel, and reselling them—including to markets that sanction Russia. Bessent called the arbitrage “unacceptable” and disclosed that Washington intends to raise tariffs on Indian exports. People familiar with the plan said the White House is preparing an extra 25% levy that would bring the additional duties imposed since President Donald Trump took office to 50%, broadening the administration’s use of trade tools to curb funding for the Kremlin. The U.S. criticism landed as Indian Prime Minister Narendra Modi met Chinese Foreign Minister Wang Yi in New Delhi and declared that India-China relations have made “steady progress.” Modi said he looks forward to meeting President Xi Jinping at the Shanghai Cooperation Organization summit in Tianjin at month-end, framing more predictable ties with Beijing as vital to regional stability. Bessent’s tariff threat, juxtaposed with Modi’s outreach to China, underscores New Delhi’s growing diplomatic tightrope: maintaining energy links with Moscow while navigating intensifying U.S. pressure and cautiously easing a years-long border standoff with its largest Asian rival.