New Delhi, Jan 24: The United States has indicated a potential shift in trade policy by suggesting a path to lift the 25 per cent tariff currently imposed on India. Treasury Secretary Scott Bessent noted that these trade measures, originally implemented due to India’s procurement of Russian crude, may be reconsidered following a significant decline in such transactions.
Washington had previously integrated this specific levy into a broader 50 per cent tariff package on Indian goods, a move that created visible friction in the bilateral relationship. Speaking on the current status of these sanctions, Bessent described the policy as a proven success in altering global energy flows.
“We put 25 per cent tariffs on India for buying Russian oil. And the Indian purchases by their refineries of Russian oil have collapsed. So that is a success,” Bessent said during a discussion with Politico. He further noted that while the duties remain active for now, the administration sees a way forward for their eventual removal.
The Treasury Secretary also pointed toward a discrepancy in how international allies handled the situation, criticizing European nations for avoiding similar trade barriers. He stated that while the U.S. took a firm stance, European partners were focused on securing a major trade agreement with New Delhi.
“Our virtue-signalling European allies refused to do it because they wanted to sign this big trade deal with India,” Bessent said. He further characterized the European purchase of refined products from India as a contradictory move that indirectly supported Moscow’s revenue streams.
India has consistently maintained that its energy acquisitions are dictated by national interest and previously labeled the American tariffs as unfair and unreasonable. Recent data from the Centre for Research on Energy and Clean Air confirms a shift, showing that major Indian refiners have significantly curtailed their intake of Russian crude in recent months.
