US hints at 25% tariff rollback as India’s Russian oil buy ‘collapses’
Bessent say EU refused to impose levy on Delhi as it eyes ‘big trade deal’
US Treasury Secretary Scott Bessent has indicated that Washington may consider rolling back the additional 25 per cent tariff imposed on India since its refinery purchases of Russian crude have “collapsed”.
Speaking on the sidelines of the World Economic Forum (WEF) in Davos, Bessent said the tariffs had achieved their intended objective. “Our 25 per cent tariff has been a huge success. India’s purchases of Russian oil have collapsed. The tariffs are still on, but there’s a path to take them off,” Bessent said, hinting at diplomatic flexibility if New Delhi continued to diversify its energy sourcing.
The levy was introduced last year as part of broader US trade pressure, with the Donald Trump administration at times escalating duties on Indian imports to an effective 50 per cent, amid concerns over India’s continued purchase of discounted Russian oil after the Ukraine war. The move was framed both as a trade action and a geopolitical signal aimed at curbing Moscow’s energy revenues.
While underscoring that the tariffs remain in force for now, Bessent’s remarks raised the prospect of easing tensions that have weighed on bilateral trade discussions, potentially opening space for more constructive engagement between the two sides.
Bessent also took aim at the European Union, accusing it of “virtue signalling” by refraining from similar punitive measures against India in order to safeguard its own commercial interests. “Our virtue-signalling European allies refused to do it because they wanted to sign this big trade deal with India,” he said.
The comments come as India and the EU prepare for their 16th summit in New Delhi, where leaders are expected to advance a comprehensive strategic agenda, including a long-pending Free Trade Agreement.
European Commission President Ursula von der Leyen has described the proposed pact as the “mother of all deals,” covering a combined market of nearly two billion people and around 25 per cent of global GDP.
India, meanwhile, has consistently emphasised its need for affordable energy and sovereign right to diversify energy supplies, even as it navigates external pressures linked to global sanctions and trade policy.
