- US Treasury Secretary Scott Bessent hinted at possible removal of 25% tariff on Indian goods
- The tariff was imposed due to India's previous large purchases of Russian oil
- India has significantly reduced its Russian oil imports amid tariff pressure
United States Treasury Secretary Scott Bessent hinted that there may be a path for the removal of the additional 25% tariff levied on Indian goods due to the reduction of the country's oil purchases from Russia.
Calling Donald Trump's tariff system a "huge success" to have Wahington's way, Bessent told a Western media outlet, "Indian purchases by their refineries of Russian oil have collapsed. So that is a huge success. The tariffs are still on, 25% tariffs for Russian oil are still on. I would imagine there is a path to take them off now."
The US imposed the punitive tariff, on top of the 25% standard duty, on India in August last year. This made the 50% rate the highest in the world.
The Trump administration has argued that Indian buying of Russian oil has funneled money into Moscow's coffers to fund its four-year war in Ukraine. New Delhi has consistently defended its earlier purchases, arguing that energy sourcing decisions are driven by global market conditions and the need to keep fuel affordable for local consumers.
Under the tariff pressure, India has reportedly reduced its oil imports from Russia. Shipments dropped to their lowest level in two years in December, while the share of OPEC supplies hit an 11-month hugh, as per news agency Reuters.
Trump has previously warned that tariffs could increase further unless India curtails its energy imports from Russia.
Union Petroleum Minister Hardeep Singh Puri said this week that despite adequate global supply, crude prices remain vulnerable to political flashpoints in West Asia, disruptions to shipping routes and unilateral policy actions by major economies, particularly the US. India, which imports 85% of its oil, has responded by diversifying its crude import basket, expanding strategic petroleum reserves and improving refining flexibility, he said.
ALSO READ: India 'Geared Down and Stopped' Russian Oil Imports, Says US Treasury Secretary Bessent
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