US Treasury Signals Possible Removal of 25% Tariff on India as Russian Oil Imports Drop
Bessent praises tariff success as India cuts Russian oil buys and hints at removing the extra 25% duty.
US Treasury Secretary Scott Bessent has indicated that Washington may consider removing the additional 25% punitive tariff imposed on Indian goods after India sharply reduced its imports of Russian oil.
Speaking to a Western media outlet, Bessent said Indian refinery purchases of Russian crude have “collapsed,” calling it a major success of former President Donald Trump’s tariff policy. While the tariffs are still in place, he suggested there is now “a path to take them off.”
The US had imposed the extra 25% tariff in August 2025, on top of an existing 25% duty—taking India’s total tariff burden to 50%, the highest globally. Washington argued that India’s Russian oil purchases indirectly helped finance Moscow’s war in Ukraine.
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Under pressure, India reportedly cut Russian oil imports to a two-year low in December while increasing purchases from OPEC, whose share hit an 11-month high, according to Reuters.
India has maintained that its energy decisions are based on global market conditions and the need to keep fuel prices affordable. Petroleum Minister Hardeep Singh Puri said India is diversifying crude sources, expanding strategic reserves, and boosting refinery flexibility amid global political and supply risks.
Trump had earlier warned that tariffs could rise further if India resumed large-scale Russian oil imports, but Bessent’s comments now suggest a potential thaw in trade tensions if current trends continue.
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