India Tariffs Reduction: US Treasury Secretary Scott Bessent Hints at Potential Rollback of 25% Duty as Russian Oil Imports Drop

Mumbai, January 24: US Treasury Secretary Scott Bessent has indicated that the United States may establish a diplomatic path to roll back the 25 percent additional tariffs currently imposed on India. Speaking at the World Economic Forum in Davos on Friday, Bessent described the trade measures as a "huge success," stating that Indian refinery purchases of Russian crude have significantly collapsed since the tariffs were implemented. The remarks suggest a potential easing of trade tensions between Washington and New Delhi, provided India continues to shift its energy sourcing away from Moscow.

The current geopolitical landscape remains complex, as the US Congress is simultaneously considering a separate bipartisan bill that could hike duties to as much as 500 percent on countries purchasing Russian oil. However, Bessent’s comments offer a more conciliatory tone from the Trump administration, highlighting that the existing 25 percent tariff has already achieved its intended goal of reducing the flow of capital to Russia’s energy sector. IOCL Lines Up 7 Million Barrels for March as India Cuts Reliance on Russian Crude Oil.

Strategic Success and Energy Sourcing

Bessent told Politico that the tariffs served as a necessary "check" on global energy markets. He noted that prior to the invasion of Ukraine, Russian oil accounted for only 2 to 3 percent of Indian refinery input, but that figure surged toward 20 percent as India sought deeply discounted crude. The Treasury Secretary asserted that the current decline in these purchases justifies a conversation about removing the trade barriers that have strained US-India relations over the past year.

Despite the pressure from Washington, New Delhi has remained firm on its "India First" energy policy. Ministry of External Affairs (MEA) Spokesperson Randhir Jaiswal stated during a weekly briefing that India is closely monitoring legislative developments in the US. India has consistently defended its oil imports, citing the fundamental need to secure "affordable energy" for its population of 1.4 billion citizens.

Criticism of European Trade "Irony"

In a sharp critique of international trade dynamics, Bessent labelled the European Union’s energy strategy an "act of irony and stupidity." He argued that while the US took decisive action through tariffs, European nations continued to purchase refined petroleum products from Indian refineries that were produced using Russian crude. According to Bessent, this indirectly financed Russia's war effort, effectively meaning European countries were "financing the war against themselves."

The Treasury Secretary suggested that the EU’s reluctance to join the US in imposing similar tariffs on India was a form of "virtue signalling." He claimed European leaders avoided these measures to protect the progress of the upcoming EU-India Free Trade Agreement (FTA), which is currently reaching its final stages of negotiation.

The "Mother of All Deals" and Global Trade

While the US focuses on energy-related tariffs, the European Union is moving toward a historic economic partnership with India. European Commission President Ursula von der Leyen, also speaking at Davos, described the pending EU-India FTA as the "mother of all deals." The agreement is expected to create a unified market of 2 billion people, accounting for nearly 25 percent of the global GDP. 'India Prioritises Affordable Energy for 1.4 Billion People', Says MEA Amid US Bill Proposing 500% Duty on Countries Buying Russian Oil (Watch Video).

Von der Leyen is scheduled to visit New Delhi next weekend for the 16th EU-India Summit, where the comprehensive strategic agenda is expected to be adopted. This shift indicates that while Washington uses tariffs as a geopolitical lever, Brussels views India as an indispensable economic partner, prioritising long-term trade stability over the immediate controversies surrounding Russian oil imports.

(The above story first appeared on LatestLY on Jan 24, 2026 01:45 PM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website latestly.com).