US Treasury Warns Of Russian Economic Collapse As Trump Slaps 50% Tariff On Indian Oil Purchases
Washington’s tariff shock on Indian oil imports and a US Treasury warning of Russian collapse deepen global energy tensions and test India’s stance. Image courtesy: RNA.
US Treasury Secretary Scott Bessent on September 7, 2025, warned that Russia’s economy could “collapse” if Washington and the European Union (EU) move ahead with imposing more secondary sanctions on countries buying crude oil from Moscow.
In an interview with NBC News, Bessent said President Donald Trump and Vice President JD Vance held a “very productive” call with European Commission President Ursula von der Leyen, followed by further discussions with him. The talks focused on joint measures to tighten pressure on Moscow’s energy revenues.
How has Trump escalated economic pressure?
The Trump administration has already escalated economic pressure by imposing an additional 25% tariff on India’s purchases of Russian crude. Combined with earlier reciprocal duties, New Delhi now faces a 50 per cent tariff on its Russian oil imports, effective August 27.
“We are prepared to increase pressure on Russia, but we need our European partners to follow us,” Bessent said. He stressed that Western resolve would determine whether Ukraine’s military endurance outlasts Russia’s economic resilience.
“If the US and EU can impose more sanctions, secondary tariffs on countries that buy Russian oil, the Russian economy will be in full collapse, and that will bring President (Vladimir) Putin to the table.”
How has India reacted to Trump tariffs and sanctions?
President Trump has expressed sharp disapproval of India’s continued reliance on Russian crude. “We put a very big tariff on India, 50% tariff, very high tariff.
I get along very well with Prime Minister (Narendra) Modi; he’s great. He was here a couple of months ago,” Trump said from the Oval Office on September 5. But he added that he was “very disappointed” by India’s large-scale oil purchases from Moscow.
Senior US officials, including Bessent and trade advisor Peter Navarro, have argued that India’s energy imports are indirectly financing Russia’s war in Ukraine.
India has strongly rejected Washington’s measures, calling the tariffs “unjustified and unreasonable.” New Delhi maintains its oil imports are guided by market dynamics and national energy security interests, despite US displeasure.
