New York: US Treasury Secretary Scott Bessent said there is a “path” to remove the 25 per cent tariffs imposed on India for buying Russian oil, noting that such purchases by Delhi from Moscow have “collapsed”.
United States President Donald Trump has imposed 50 per cent tariffs on India, including 25 per cent for its purchases of Russian oil, leading to a strain in the bilateral ties between the two countries.
Bessent on Friday defined the sanctions imposed on India as a “success”.
Besant noted that before Russia invaded Ukraine, Russian oil accounted for only 2–3 percent of the crude processed by Indian refineries. However, after sanctions were imposed and Russian crude began selling at significant discounts, its share rose sharply, enabling Indian refiners to achieve higher profit margins.
The Treasury Secretary described the 25% tariffs on India as a major achievement, claiming they successfully pressured New Delhi to reduce its purchases of Russian crude oil drastically.
US Treasury Secretary Scott Bessent’s remarks come as India and the European Union prepare for what is being called the “mother of all deals,” even as uncertainty over President Donald Trump’s tariff policies remains. The proposed agreement comes at a difficult time for Europe, after Trump earlier threatened to widen his trade war with European allies over their opposition to a US takeover of Greenland. According to some reports, the agreement could be announced as early as January 27, when leaders from both sides are expected to meet for a high-level summit.
US has levied a 50% tariff on most Indian exports. Washington initially imposed a 25% reciprocal tariff on April 2, 2025, over unfair trade practices and India’s large trade surplus, then added another 25% penalty via Executive Order 14329 on August 6, 2025, explicitly targeting New Delhi’s continued purchase of discounted Russian oil amid the Ukraine war.
US President Donald Trump has repeatedly claimed that India’s buying Russian oil directly funds the Kremlin’s war machine. India defended its energy policy, asserting its sovereign right to source oil from the most advantageous suppliers to ensure energy security for its 1.4 billion citizens.
After the levy of tariffs, several rounds of meetings have been held between America and India over the issue; however, no conclusion has been reached.
Recently, Trump has struck a conciliatory note, saying in an interview at Davos with Moneycontrol, News18’s sister publication, that he has “great respect” for India’s Prime Minister, calling him a “fantastic man” and a friend. He added that he was confident both sides would reach a trade agreement despite ongoing tariff-related tensions.
