US Treasury Secretary Scott Bessent has indicated that the United States may consider lifting the 25% tariff imposed on Indian goods, introduced by the Trump administration to deter India’s purchase of
Russian oil following the 2022 Ukraine invasion.
Speaking at the World Economic Forum in Davos, Bessent said the tariff had achieved its intended objective and hinted that conditions may now exist for its removal.
“Our 25% tariff on India has been a huge success. Indian purchases of Russian oil have collapsed. The tariffs are still on. I would imagine there is a path to take them off now,” Bessent said.
Tariff Introduced To Curb Russian Oil Trade
The 25% tariff was imposed in August 2025 through an executive order signed by then US President Donald Trump. The measure targeted Indian goods entering the US and was aimed at pressuring countries, including India, to sharply reduce imports of Russian oil amid Western efforts to limit Moscow’s revenue during the Ukraine war.
Bessent Reiterates Impact On Indian Oil Imports
Earlier this week, speaking to Fox Business, Bessent reiterated the administration’s stance, claiming the tariff had directly influenced India’s oil sourcing decisions.
“India started buying Russian oil after the conflict began, but President Trump put a 25% tariff on them, and India has geared down and has stopped buying Russian oil,” he said.
India Calls Tariff ‘Unfair And Unreasonable’
India had earlier criticised the US move, describing it as “unfair, unjustified and unreasonable,” while maintaining that its energy procurement decisions are guided by national interest and domestic requirements.
Data Shows Sharp Decline, Not Complete Halt
January 2026 data indicates a 35% month-on-month decline in Russian oil imports by India, touching a two-year low. Only three Indian refiners were reported to have purchased Russian crude during the period, suggesting a significant reduction but not a complete halt.
