US hints at tariff relief for India as Russian oil imports plunge
US hints at tariff relief for India as Russian oil imports plunge
US signals possible removal of 25% tariffs on Russian oil for India amid a sharp drop in Indian imports, shaping the broader India-US trade narrative.
U.S. Treasury Secretary Scott Bessent on Friday signaled the potential removal of an additional 25% tariffs on India following a sharp reduction in Indian imports of Russian oil. In an interview with Politico at the World Economic Forum, he said there is a path to take them off.
The 25% tariffs on Russian oil remain in place, but the trend in India’s energy purchases is changing. Indian refineries have slashed purchases of Russian crude to the lowest level in two years, a shift that has helped lift OPEC’s share of India’s oil imports to an 11-month high, according to Reuters. Bessent’s remarks come amid ongoing pressure from former President Trump, who has warned that tariffs could rise again unless India curtails its Russian oil purchases.
The potential policy tweak underscores the delicate balance in the U.S.-India energy-and-trade relationship, particularly as global markets reconfigure in response to shifting oil flows and geopolitical pressure. The world is watching how policy signals translate into action, especially at a time when India’s growth story remains robust but exposed to external shocks.
Analysts say any move to ease tariffs would depend on India’s continued pivot away from Russian crude and the U.S. assessment of its energy security needs. As Budget and trade considerations unfold in 2026, observers will look for concrete steps that align tariff policy with market realities and strategic interests.
For now, the conversation reflects a broader dynamic: tariff leverage could be tempered if Indian refineries maintain lower Russian oil purchases, signaling a potential thaw that could influence pricing, inflation, and bilateral relations in the months ahead.
