New Delhi: The United States may consider lifting the 25 percent tariff imposed on Indian goods, with US Treasury Secretary Scott Bessent saying the measure has already delivered its intended impact by sharply reducing India’s purchases of Russian oil.
Speaking with POLITICO’s Dasha Burns at the World Economic Forum in Davos, Bessent described the tariff as effective and suggested that the conditions for a rollback are now emerging. “Our 25% tariff on India has been a huge success. Indian purchases of Russian oil have collapsed. The tariffs are still on. I would imagine there is a path to take them off now,” he said.
The tariff was introduced in August 2025 through an executive order issued by then US President Donald Trump, targeting Indian exports to the American market. The move was aimed at pressuring New Delhi and other countries to cut back on Russian oil imports following Moscow’s invasion of Ukraine, as part of broader Western efforts to limit Russia’s revenue streams.
Bessent has reiterated the administration’s position in recent media interactions, arguing that the policy directly altered India’s sourcing patterns. “India started buying Russian oil after the conflict began, but President Trump put a 25% tariff on them, and India has geared down and has stopped buying Russian oil,” he said earlier this week.
India had pushed back strongly against the tariff when it was announced, calling the move unfair and unjustified, while maintaining that its energy decisions are driven by national interest and domestic needs.
Recent data suggests a substantial decline in Russian crude imports by India. January 2026 figures point to a sharp month-on-month fall, bringing purchases to a two-year low. Only a handful of Indian refiners reportedly sourced Russian oil during the period, indicating a marked reduction, though not a complete halt.
Bessent’s remarks have fuelled expectations that Washington could soon recalibrate its stance, potentially easing trade tensions between the two countries and reopening the door for normalisation of market access for Indian exporters.
