Amid ongoing trade negotiations between India and the United States, the Donald Trump administration has signalled that it may roll back a portion of the steep tariffs imposed on Indian imports, citing a sharp fall in New Delhi’s purchases of Russian crude oil.
US Treasury Secretary Scott Bessent said the reduction in Russian oil imports by Indian refineries showed that Washington’s pressure tactics had worked.
Speaking in an interview with Politico, Bessent said the United States had imposed a 25 per cent tariff on India over its oil trade with Russia and that the move had delivered results.
“We put 25 per cent tariffs on India for buying Russian oil. And the Indian purchases, by their refineries, of Russian oil have collapsed. That is a success,” Bessent said.
While confirming that the tariffs remain in place for now, he suggested that the administration was open to easing them. “The tariffs are still on. I would imagine there is a path to take them off,” he said, indicating that up to half of the total 50 per cent duties could be reconsidered.
The United States had doubled tariffs on Indian goods to 50 per cent in August last year, during a broader trade offensive under President Donald Trump. At the time, Trump linked the move to India’s energy ties with Russia, alongside long-standing trade grievances.
Bessent later reiterated his claims while speaking to Fox News on the sidelines of the World Economic Forum in Davos, saying India had “geared down” and stopped buying Russian oil after the tariffs were imposed. Indian authorities, however, have maintained that imports from Russia continue, even if some private refiners have reduced purchases.