Trump ally US Treasury Secretary Bessent signals possible rollback of 25% India tariffs

The United States has indicated it may consider easing punitive tariffs on India following a significant reduction in New Delhi’s imports of Russian crude oil, a development that could ease trade tensions and support ongoing economic negotiations between the two countries.

US Treasury Secretary Scott Bessent , speaking in an interview with Politico on the sidelines of the World Economic Forum in Davos , said, “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.” He added, “The tariffs are still on. I would imagine there is a path to take them off now,” hinting at the possibility of a partial rollback.

India’s imports of Russian crude have indeed fallen sharply in recent months. In December 2025, imports dropped to their lowest level in roughly two years, with refiners bringing in around one million barrels per day - down from earlier levels of 1.4-1.6 million barrels per day at the peak of post-war purchases. As of early 2026, Russia now accounts for less than 25 per cent of India’s total crude oil imports, a decline from the roughly 30-40 per cent share seen in 2024-2025. Indian refiners have increasingly turned to suppliers in the Middle East, Africa, and Latin America , while China has absorbed some of the Russian volumes India previously purchased.

Bessent also criticised European policy, stating, “They refused to put tariffs on India and ended up buying refined petroleum products from Russian crude at higher prices,” using this comparison to frame the US approach as more effective in exerting economic pressure on Moscow.

For context, before Russia invaded Ukraine in February 2022, Indian imports of Russian crude were negligible - less than 1 per cent of total oil imports , or around 68,000 barrels per day. Following the war and Russia’s discounted crude, India sharply increased its purchases, making Russia one of its largest suppliers for several years. The recent drop is therefore a significant retrenchment from the post-war peak, though India has not stopped buying Russian oil entirely.

Highlighting India’s growing energy influence, Oil Minister Hardeep Singh Puri, speaking to reporters in New Delhi ahead of India Energy Week 2026 , said, “India can leverage its growing energy demand to negotiate better oil and gas supply deals.” He added, “I don’t foresee in the coming period any shortage of energy. You have to negotiate this, and you have to negotiate good prices, etc.” Puri stressed that India’s refiners continue seeking alternatives to Russian crude, allowing the country to secure affordable energy while navigating geopolitical constraints.

The remarks come as European Union leaders visit India for a summit on trade, technology, and defense cooperation. Indian exporters have shown resilience despite the tariffs, bolstering New Delhi’s negotiating position in ongoing talks with Washington. Analysts say any move toward tariff relief would be welcomed in India as a sign of thawing tensions and could support broader cooperation on trade and strategic priorities, even as both sides navigate other economic and geopolitical challenges.