US Treasury Secretary Scott Bessent indicated that the Trump administration may consider rolling back 25% of the 50% tariffs imposed on India, citing a sharp decline in India’s purchases of Russian oil.
Speaking at the World Economic Forum in Davos, Bessent said the tariffs had achieved their intended effect, as India significantly reduced imports of Russian crude.
The United States had introduced the tariffs in two tranches. The first 25% duty targeted alleged trade imbalances, while the second 25% levy punished India for continuing to buy Russian oil despite Washington’s efforts to isolate Moscow. Bessent described the initial tariff as “a huge success,” noting that India’s oil imports from Russia had collapsed.
He suggested that a path now exists to remove part of the tariffs, though no formal decision has been announced. Bessent also criticised the European Union for refraining from imposing similar duties, arguing that Europe’s pursuit of a trade deal with New Delhi undermined US pressure on Moscow.
India, the world’s third-largest oil importer, emerged as the biggest buyer of discounted Russian crude after Western nations shunned Moscow following its 2022 invasion of Ukraine. While private firms in India have reportedly scaled back imports, New Delhi maintains that purchases continue, insisting its energy policy is guided by national interest.
The remarks point to a possible recalibration of Washington’s trade stance toward India. Both countries have engaged in discussions to ease tensions and explore a mutually beneficial trade deal. The potential rollback of tariffs could mark a significant step in improving bilateral economic relations.
