The United States has hinted at a possible rollback of tariffs imposed on India over its purchases of Russian oil, even as the measures continue to strain bilateral relations between the two countries. US Treasury Secretary Scott Bessent said there is a clear path to remove the additional 25 per cent tariff, noting that India’s imports of Russian crude have dropped significantly since the penalties were introduced.
President Donald Trump had imposed total tariffs of 50 per cent on Indian goods, which included a specific 25 per cent levy linked to India’s procurement of Russian oil. According to Bessent, the sanctions have delivered the intended results and should be viewed as a success. He stated that Indian refineries have sharply curtailed their purchases of Russian crude, adding that the tariffs remain in force for now but could be lifted in the future.
Bessent described the decline in Russian oil imports by India as evidence that the policy has worked. He suggested that the tariff mechanism had effectively altered India’s sourcing decisions, calling it a significant achievement for the US administration.
The Treasury Secretary also criticised European countries for not adopting similar measures against India. He argued that several European allies avoided imposing tariffs because they were keen on advancing trade negotiations with New Delhi. Bessent accused them of hypocrisy, claiming that while they refrained from penalising India, they continued to buy refined petroleum products processed in Indian refineries using discounted Russian oil.
Highlighting the shift in India’s oil sourcing, Bessent said that before the Ukraine conflict, Russian crude accounted for only a small fraction of India’s refinery intake. After the invasion, that share rose sharply as Indian refiners took advantage of discounted prices, generating substantial profits. He alleged that European nations ultimately funded Russia’s war efforts by importing refined fuels derived from Russian crude via India.
India, however, has rejected the US action, calling the tariffs unfair, unjustified and unreasonable. New Delhi has consistently maintained that its energy policy is guided by national interest and the need to ensure affordable supplies for its population.
Recent data indicates that India has already reduced its dependence on Russian fossil fuels. In December, the country slipped to third place among buyers of Russian energy after major private and state run refiners significantly cut crude imports, according to the Centre for Research on Energy and Clean Air.
Meanwhile, India and the European Union are expected to announce the conclusion of negotiations on a Free Trade Agreement in the near future, adding another layer of complexity to the evolving global energy and trade dynamics.
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