US May Roll Back 25% India Tariffs After Russian Oil Import Cuts: Scott Bessent

US Treasury Secretary Scott Bessent has suggested that the Donald Trump-led administration could consider lifting 25% of the 50% tariffs previously imposed on India, citing what he described as a significant decline in New Delhi’s imports of Russian crude oil in recent months.

In an interview with the American news outlet Politico, Bessent stated that India’s decision to reduce its purchases of Russian Oil has created an opportunity to lower tariffs on Indian goods by at least 25%.

The tariffs were implemented in two parts: a 25% duty imposed on India over alleged trade imbalances, and another 25% levy introduced as a punitive measure in response to India’s continued purchases of Russian oil, despite Washington’s efforts to tighten economic pressure on Moscow.

“We have had great success with our 25% tariff on India. India has stopped buying Russian oil. The tariffs are still on. I would imagine there is a path to take them off now,” Bessent told Politico.

He also commented on the European Union’s approach, stating that the EU refrained from imposing tariffs on India because it “wants to sign a big trade deal” with New Delhi. He described the Europeans’ decision to continue purchasing refined energy products from India as “stupid.”

Speaking to Fox News during the World Economic Forum in Davos last week, Bessent highlighted that India, the world’s third-largest oil importer, has significantly scaled back its purchases of Russian crude. “India started buying Russian oil after the conflict began, but President Trump put a 25 per cent tariff on them, and India has geared down and has stopped buying Russian oil,” he said.

Although both nations have been engaged in discussions to reach a mutually beneficial trade deal and ease tensions that emerged after the tariff announcement in August last year, Bessent’s remarks indicate that the Trump administration may be reevaluating its hardline trade stance towards India.

Recent reports suggest that Indian private companies have cut back on Russian oil imports, though New Delhi maintains that purchases are still ongoing. The Trump administration has been urging countries like India to halt oil trade with Russia as a strategy to increase pressure on Moscow. India, however, has rejected this approach, calling it “unfair, unjustified and unreasonable” and emphasizing that its energy strategy is guided by national interests.

Following Western nations’ withdrawal from Moscow after Russia’s invasion of Ukraine in February 2022, India emerged as a major buyer of discounted Russian crude, becoming one of the key consumers of Moscow’s petroleum exports.