US Signals Possible Rollback of 25% Tariffs on India Over Russian Oil Purchases
US Treasury Secretary Scott Bessent has indicated that Washington may consider rolling back the additional 25% tariffs imposed on Indian imports over the country’s purchase of Russian oil, suggesting that the policy has already achieved its intended outcome.
Speaking at the World Economic Forum in Davos during a conversation with Politico, Bessent said Indian refiners’ purchases of Russian oil have “collapsed” following the tariffs, calling the move a “huge success.”
“We put a 25 per cent tariff on India for buying Russian oil, and the Indian purchases by their refineries of Russian oil have collapsed. So that is a success. The tariffs are still on. I would imagine there is a path to take them off,” Bessent said.
Background on the India Tariffs
In August last year, US President Donald Trump issued an executive order imposing an additional 25% tariff on imports from India, citing the country’s direct and indirect purchases of Russian oil. This move pushed the combined tariff burden on certain Indian goods to 50%.
Bessent’s remarks come at a time when the US Congress is debating a proposed Russia Sanctions Bill that could impose duties of up to 500% on countries continuing to buy Russian oil.
India Maintains ‘Affordable Energy’ Stance
Despite US pressure, New Delhi has reiterated its ‘India First’ energy policy, stressing the need to secure affordable fuel for its population of 1.4 billion. Indian officials have maintained that energy sourcing decisions are guided by national interest rather than geopolitical pressure.
Earlier, Ministry of External Affairs spokesperson Randhir Jaiswal said India is closely monitoring developments related to the proposed sanctions legislation in the US.
“We are aware of the proposed bill. We are closely following the developments,” he said during a weekly briefing.
What Is the Russia Sanctions Bill?
In January, US Senator Lindsey Graham announced that President Trump had given his approval to a bipartisan Russia Sanctions Bill. The legislation aims to pressure countries such as India, China, and Brazil to halt purchases of Russian oil, with penalties targeting nations accused of “fuelling Russia’s war effort.”
Bessent Criticises Europe Over Russian Oil
Bessent also criticised European countries for importing refined Russian oil products from India, accusing them of indirectly financing the conflict in Ukraine. He described Europe’s stance as “ironic,” arguing that EU nations have avoided imposing similar tariffs on India to protect negotiations for an EU-India Free Trade Agreement (FTA).
According to Bessent, European leaders are “virtue signalling” while prioritising economic interests tied to the proposed trade deal.
EU-India Free Trade Agreement in Focus
His comments come ahead of the upcoming EU-India summit, where progress on the long-awaited FTA is expected. European Commission President Ursula von der Leyen has described the agreement as “the mother of all deals,” potentially creating a market of nearly 2 billion people and accounting for about 25% of global GDP.
Addressing the Davos forum, von der Leyen said Europe is on the verge of a historic trade agreement with India, underlining the continent’s view of New Delhi as a key economic partner despite ongoing geopolitical tensions over Russian oil.
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