U.S. Treasury Secretary Scott Bessent said India is “just profiteering” from the war in Ukraine by buying discounted Russian crude, refining it and reselling the products abroad. In a televised interview on 19 Aug., Bessent noted that Russian oil now makes up 42% of India’s imports, compared with less than 1% before the conflict, and estimated the practice has generated about $16 billion in windfall gains for Indian firms. He called the arbitrage “unacceptable” and reiterated that Washington is ready to raise trade penalties on New Delhi. President Donald Trump has already imposed a 25% surcharge on most Indian exports and has signalled a second 25-percentage-point increase that would take effect on 27 Aug., lifting the extra duty to 50%. Bessent contrasted India’s actions with those of China, saying Beijing’s purchases of Russian oil had risen only modestly and did not involve similar resale profits. Speaking at the Economic Times World Leaders Forum in New Delhi on 23 Aug., Indian External Affairs Minister Subrahmanyam Jaishankar confirmed that bilateral trade negotiations are still under way but said India has “red lines” it will defend, particularly to protect farmers and small producers. Jaishankar rejected the U.S. criticism, arguing that other large buyers of Russian energy face no comparable penalties. “If you have a problem with our oil, don’t buy it,” he said, adding that the decision to import crude is a matter of national interest. Reuters reported that a planned visit by U.S. trade officials to New Delhi from 25–29 Aug. has been scrapped, dimming hopes of delaying the tariff hike. Capital Economics estimates the full 50% levy could shave 0.8 percentage point off India’s economic growth in both 2025 and 2026, and economists warn the dispute may undermine India’s ambitions to position itself as a global manufacturing hub.