Trump aide hints at rolling back 25% India tariffs after ‘Russian oil purchases collapse’ – Firstpost

After months of trade tensions, US Treasury Secretary Scott Bessent has indicated that the President Donald Trump-led administration may consider rolling back half of the 50 percent tariffs imposed on India, citing a sharp decline in New Delhi’s purchases of Russian crude oil in recent months.

Speaking to American news outlet Politico, Bessent said India’s decision to scale down imports of Russian oil had created favourable conditions for easing at least 25 per cent tariffs on Indian goods.

Tariffs imposed in two phases

The United States imposed the duties in two tranches. While a 25 per  cent tariff was introduced over alleged trade imbalances, another 25 per cent levy was imposed as a punitive measure in response to India’s continued purchases of Russian crude, even as Washington sought to intensify economic pressure on Moscow.

“Our 25 per cent 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,” Bessent told Politico.

EU spared tariffs amid trade talks

Bessent also said the European Union had refrained from imposing tariffs on India because it “wants to sign a big trade deal” with New Delhi, describing the Europeans’ actions as “stupid” for purchasing refined energy products from India.

Claims of reduced Russian oil imports

Speaking to Fox News on the sidelines of the World Economic Forum in Davos last week, Bessent claimed that India, the world’s third-largest oil importer, had significantly reduced its purchases of Russian oil.

“India started buying Russian oil after the conflict began, but President Trump put a 25 percent tariff on them, and India has geared down and has stopped buying Russian oil,” he said.

Possible shift in US trade stance

Bessent’s remarks point to a possible recalibration of the Trump administration’s hardline trade approach towards India, even as both countries have engaged at various levels in recent months to reach a mutually beneficial trade deal and ease tensions that emerged after the tariffs were announced in August last year.

India rejects US pressure on energy ties

However, New Delhi has maintained that purchases from Russia continue without interruption.

As part of efforts to step up pressure on Moscow, the Trump administration has urged countries, including India, to cut oil ties with Russia. India has rejected this pressure, calling the US action “unfair, unjustified and unreasonable”, and reiterating that its energy policy is guided by national interest.

India, the world’s third-largest oil importer, emerged as the biggest buyer of discounted Russian crude after Western countries distanced themselves from Moscow following its February 2022 invasion of Ukraine.