US Hints at Rolling Back 25% Tariffs on India Over Russian Oil Purchase
Bessent said Indian refinery purchases of Russian oil have “collapsed” due to the tariffs
Davos: US Treasury Secretary Scott Bessent on Friday (local time) hinted that the additional 25 per cent tariffs imposed on India could be removed, claiming that India’s purchases of Russian oil have dropped sharply following the US move, which he termed a “huge success”.
Speaking to Politico on the sidelines of the World Economic Forum in Davos, Bessent said Indian refinery purchases of Russian oil have “collapsed” due to the tariffs. He suggested that while the tariffs remain in place for now, there is a diplomatic “path” to remove them if India shifts its energy sourcing, adding that the measures have delivered tangible benefits to the American economy.
“We put a 25 per cent tariff on India for buying Russian oil, and the Indian purchases by their refineries of Russian oil have collapsed. So that is a success. The tariffs are still on. I would imagine there is a path to take them off,” Bessent told Politico.
His remarks come amid discussions in the US Congress on a proposed bill that could impose a 500 per cent duty on countries purchasing Russian oil. India, however, has maintained that its policy is guided by the need to secure affordable energy for its population, reiterating its “India First” energy approach.
Reacting to the proposed legislation, Ministry of External Affairs spokesperson Randhir Jaiswal said New Delhi is aware of the bill and is closely monitoring developments. “We are aware of the proposed bill. We are closely following the developments,” he said during a weekly press briefing.
Despite legislative pressure from Washington, India continues to balance its strategic autonomy with global market realities. The issue gained further attention after US Senator Lindsey Graham said earlier this month that President Donald Trump had given a green light to a bipartisan Russia Sanctions Bill targeting countries such as India, China, and Brazil for buying Russian oil.
Bessent also criticised European countries for purchasing refined Russian oil products from India, saying they were indirectly financing the war in Ukraine. He described the practice as an “act of irony and stupidity”, arguing that Europe was effectively funding Russia by buying refined petroleum products made from discounted Russian crude.
He pointed out that before the Ukraine invasion, only 2–3 per cent of India’s refinery inputs came from Russia, which later rose sharply due to heavy discounts. According to Bessent, European buyers of these refined products are “financing the war against themselves”.
Meanwhile, the European Union and India are preparing to discuss a comprehensive strategic agenda, including a proposed Free Trade Agreement (FTA) described by European Commission President Ursula von der Leyen as “the mother of all deals”.
Bessent suggested that the EU has avoided imposing similar tariffs on India in order to protect the upcoming EU-India FTA, accusing European allies of “virtue signalling”.
The EU and India are set to hold their 16th summit in New Delhi, where a new comprehensive strategic agenda is expected to be adopted. Von der Leyen is scheduled to visit New Delhi next weekend to advance the deal, underscoring Europe’s view of India as a key economic partner.
Addressing the World Economic Forum in Davos, von der Leyen said Europe is close to finalising a historic trade agreement that would create a market of nearly 2 billion people, accounting for about a quarter of global GDP, while reaffirming Europe’s openness to global trade and cooperation.
