WASHINGTON – The United States is considering removing 25% tariffs on India after Indian imports of Russian oil fell sharply, officials said. Treasury Secretary Scott Bessent highlighted the reduction as a positive development for trade relations. The potential move comes amid ongoing tensions over India’s past purchases of Russian crude.
Trade friction escalated in August when U.S. President Donald Trump doubled tariffs on Indian goods to 50%, including a 25% levy targeting Russian oil imports. The tariffs aimed to curb India’s reliance on discounted Russian crude amid global sanctions.
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Bessent, speaking at the World Economic Forum, said Indian purchases of Russian oil “have collapsed,” calling it a success. He added, “The tariffs are still on… I would imagine there is a path to take them off.”
Data shows India’s Russian oil imports in December dropped to their lowest in two years, while OPEC’s share of Indian oil imports rose to an 11-month high, Reuters reported. This shift strengthens India’s energy diversification.
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The remarks come amid continued pressure from former President Trump, who warned tariffs could increase further unless India curbs its Russian oil purchases. U.S.-India trade relations remain under close international scrutiny.