Washington: The United States has hinted at easing the additional 25 per cent tariff imposed on Indian goods, following a sharp decline in India’s purchases of Russian crude oil, US Treasury Secretary Scott Bessent said on the sidelines of the World Economic Forum in Davos.
Bessent noted that the punitive levy had delivered the outcome Washington was seeking, adding that India’s reduced reliance on Russian energy supplies had opened the door for a potential rollback of the duties. “The tariff has achieved its purpose. Indian imports of Russian oil have dropped significantly. While the measure is still in place, there is a pathway for it to be removed,” he said, suggesting that future policy shifts would depend on New Delhi’s continued efforts to diversify its energy sources.
The tariff was introduced last year as part of a broader trade and diplomatic strategy under the Donald Trump administration, aimed at discouraging countries from purchasing discounted Russian oil in the aftermath of the Ukraine conflict. At certain points, the cumulative duties on Indian exports to the US reached as high as 50 per cent, creating friction in bilateral trade relations.
Bessent’s remarks have raised hopes of a thaw in economic ties between the two countries, potentially paving the way for renewed negotiations and stronger commercial engagement. However, he clarified that any change would depend on sustained progress in reducing energy imports from Russia.
In his comments, the US Treasury Secretary also criticised the European Union, accusing it of adopting a selective approach driven by economic interests. He alleged that Brussels refrained from imposing similar trade restrictions on India to protect its own commercial agenda. “Our European partners chose not to act because they were keen on securing a major trade agreement with India,” he said.
The statement comes ahead of the 16th India–EU summit in New Delhi, where leaders are expected to push forward talks on a long-pending Free Trade Agreement. European Commission President Ursula von der Leyen has previously described the proposed pact as one of the most ambitious trade deals globally, potentially linking markets representing nearly two billion people and a quarter of the world’s economic output.
India has maintained that securing affordable energy remains a national priority and has defended its right to source fuel from diverse suppliers. Even so, New Delhi continues to balance economic needs with mounting geopolitical and trade pressures as global realignments reshape energy and commerce.
