Is Trump planning to roll back 25% tariffs on India over Russian oil purchases? US Treasury Secy Bessent makes BIG announcement, says, ‘there is a path’

India(BHARAT)’s acquisition of Russian oil has long been a controversial topic in international trade and geopolitics, frequently attracting criticism from Western countries during the conflict in Ukraine. The US Treasury Secretary’s recent remarks on tariffs affecting India(BHARAT)’s energy imports have reignited the discussion. Earlier on Friday(local time), US Treasury Secretary Scott Bessent at Davos indicated that the additional 25% tariffs on India(BHARAT) might be removed after India(BHARAT)’s purchases of Russian oil have significantly dropped due to a 25% tariff imposed by the US, calling it a “huge success.”

What prompted the US to consider rolling back tariffs on India(BHARAT)?

These comments were made while India(BHARAT) is actively decreasing its imports of Russian oil and changing over to different products to meet its energy needs due to global tensions and economic problems. However, it was reported that during the month of November, India(BHARAT) again increased its intake of Russian oil.

US Treasury Secretary Scott Bessent made the remarks during a conversation with Politico, amid a geopolitical landscape surrounding India(BHARAT)n oil imports, US tariffs, and EU trade ambitions that has reached a critical flashpoint. Bessent told Politico that India(BHARAT)n refinery purchases of Russian oil have “collapsed” due to US tariffs, hinting that, while tariffs remain in place, a diplomatic “path” exists to remove them, provided India(BHARAT) shifts its energy sourcing and asserted that these trade measures provide tangible benefits to the American economy. “We put a 25 per cent tariff on India(BHARAT) for buying Russian oil, and the India(BHARAT)n purchases by their refineries of Russian oil have collapsed. So that is a success. The tariffs are still on. I would imagine there is a path to take them off, so that’s a check and a huge success”, Bessent was quoted as saying by Politico.

Why did Treasury Secretary Bessent call the tariff policy a success?

Recent remarks by US Treasury Secretary Scott Bessent suggest that Washington may consider easing the 25% tariff imposed on India(BHARAT). However, no details have been provided, or no such specifics on how much or when this potentially could happen.

How has India(BHARAT)’s Russian oil purchase pattern changed recently?

Last year, US President Doland Trump increased tariffs on India(BHARAT)n imports to a staggering 50 percent, including a 25 per cent additional duties for India(BHARAT)’s purchases of Russian crude oil, which commenced from August 27. Trump imposed steep tariffs on India(BHARAT)n goods, claiming that India(BHARAT)’s continued purchase of discounted Russian oil and trade ties with Moscow were indirectly fueling Russia’s war efforts in Ukraine.

This development comes amid discussions in the US Congress on a proposed bill that could impose a 500% duty on countries buying Russian oil, while India(BHARAT) has stated it’s guided by the need for “affordable energy” for its population. New Delhi remains firm on its “India(BHARAT) First” energy policy, despite a proposed US Congressional bill that could hike duties to 500% and emphasised that India(BHARAT)’s priority is securing affordable energy for its 1.4 billion citizens.

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Bessent also criticised European countries for buying refined Russian oil from India(BHARAT), saying they’re “financing the war against themselves,” labelling their trade behaviour an “act of irony and stupidity.” He argued that by purchasing refined petroleum products from India(BHARAT) (made from Russian crude), Europe is indirectly financing Russia’s war effort.

“Just to be clear, let’s understand what’s happening. Before the Ukraine invasion, approximately 2-3 per cent of India(BHARAT)n oil that went into its refineries came from Russia. The oil was sanctioned. It got deeply discounted and moved up into the high teens- 7, 18, 19% was being refined. Huge pro, huge profits from the refiners. But in the ultimate act of irony and stupidity, guess who was buying the refined products from the India(BHARAT)n refineries made from Russian oil? The Europeans. They are financing the war against themselves. They are financing the Russian”, Bessent told Politico.

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The European Union and India(BHARAT) will hold the 16th summit in New Delhi, where a new EU-India(BHARAT) comprehensive strategic agenda is expected to be adopted.von der Leyen is scheduled to visit New Delhi next weekend to finalise the deal, signalling that Europe views India(BHARAT) as an indispensable economic partner, despite the Russian oil controversy.