New Delhi, Jan 24: A senior U.S. official has confirmed that the 25 per cent tariff levied against India for its Russian oil imports could soon be rescinded. Treasury Secretary Scott Bessent stated that a “path” exists to roll back the financial penalties, citing a dramatic reduction in the volume of Russian oil reaching Indian refineries.
The tariffs were part of a wider trade strategy by the Trump administration, which saw a 50 per cent total duty applied to various Indian imports. The U.S. Treasury now views the reduction in India’s reliance on Russian energy as a validation of its economic pressure.
“I would imagine that there is a path to take them off. So that’s a check and a huge success,” Bessent said, referring to the current status of the 25 per cent oil-related tariffs.
The U.S. administration had observed a sharp rise in Russian oil imports by India following the conflict in Ukraine, with levels jumping from roughly 3 per cent to nearly 20 per cent of refinery intake. Bessent noted that this trend has since reversed, leading to the current reconsiderations in Washington.
The Treasury Secretary also used the development to address the actions of European allies, who he claimed allowed “irony and stupidity” to guide their energy policies. He suggested that by buying refined products from India that originated in Russia, Europe was inadvertently funding the very conflict it sought to end.
“I said there was an act of stupidity,” Bessent clarified when asked about his critique of European trade choices.
While New Delhi and the European Union move closer to finalizing a Free Trade Agreement, India continues to defend its sovereign right to manage its energy security. However, reports indicate that state-owned and private refiners in India have already scaled back their Russian crude orders, moving the country down the list of Moscow’s top fossil fuel customers.
