‘Russian oil purchase collapsed’: Will US roll back 25% tariffs on India? Trump aide signals possible relief

What happened:
The United States may consider rolling back the 25 per cent tariffs imposed on Indian imports over New Delhi’s purchase of Russian crude oil, after Washington claimed the move has already achieved its objective. US Treasury Secretary Scott Bessent said there is a potential “path” to lifting the tariffs, arguing that India’s refinery-level purchases of Russian oil have sharply declined.

Why it matters now:
The remarks come amid strained US-India trade ties, with tariffs, energy security, and Russia-linked sanctions emerging as key flashpoints. Any rollback would ease pressure on Indian exporters and signal a possible recalibration of Washington’s approach as geopolitical and economic priorities shift.

What the US is saying:
Speaking at the World Economic Forum in Davos, Bessent said the tariff decision had delivered tangible results. According to him, the penalties imposed by the Trump administration forced a major reduction in India’s Russian oil imports.

“We put 25% tariffs on India for buying Russian oil and the Indian purchases by their refineries of Russian oil have collapsed. So that is a success,” Bessent said, adding that while the tariffs remain in place, “there is a path to take them off.”

He described the move as a “check” that worked, suggesting the US may now reassess whether the punitive measure still needs to continue.

EU dragged into the debate:
Bessent also criticised European countries, accusing them of indirectly financing Russia’s war in Ukraine. He claimed that while the EU publicly criticised India’s Russian oil imports, European buyers continued to purchase refined products made from discounted Russian crude processed in Indian refineries.

Before the Ukraine conflict, Russian oil accounted for just 2–3 per cent of India’s crude imports. After sanctions were imposed, discounted Russian oil reportedly rose to the high teens in India’s refinery mix. Bessent argued that European buyers then imported refined fuels from India, effectively benefiting from the same Russian oil they criticised.

In his words, this amounted to “the ultimate act of irony”, as Europe was “financing the war against itself”.

India’s position:
India has consistently rejected US criticism, calling the tariff action “unfair, unjustified and unreasonable”. New Delhi has maintained that its energy sourcing decisions are guided by national interest, affordability, and global market conditions, not political alignment.

Indian officials have also pointed out that Western nations themselves continued energy trade flows with Russia through indirect routes, even while urging others to cut ties.

Broader trade tensions:
The Russian oil issue sits within a larger trade dispute. The Trump administration has imposed tariffs totalling up to 50 per cent on certain Indian imports, with senior US trade officials frequently accusing New Delhi of maintaining high tariff barriers.

Trade adviser Peter Navarro has previously labelled India the “Maharaja of tariffs” and framed Russian oil purchases as a national security concern. He has also raised objections over US-built AI platforms serving large overseas markets, including India, as part of a wider critique of trade imbalances.

What happens next:
Bessent’s comments suggest that Washington may be preparing to use tariff rollbacks as leverage, linking trade relief to changes in India’s energy sourcing behaviour. However, no formal timeline or decision has been announced.

The issue is likely to feature in upcoming high-level engagements, especially as global leaders reassess sanctions, energy security, and trade alignments amid continuing instability in Ukraine.

What to watch:

• Any official US move to review or ease the 25% tariffs

• India’s crude oil import data in the coming months

• Signals from upcoming US-India trade discussions

• The EU’s enforcement of refined oil sanctions

For now, the tariffs remain in place — but Washington’s tone suggests the door to rollback is no longer closed.