US signals rollback of Trump's 25% tariff as India cuts Russian oil imports

US Treasury Secretary Scott Bessent has indicated there may be a path to remove the 25 per cent tariff imposed on India over its purchases of Russian oil, as New Delhi has significantly cut those imports in recent months.

Speaking in an interview with Politico, Bessent said that although the tariffs remain in place, reductions in Indian purchases of Russian crude offer a basis to reconsider punitive duties introduced under the Trump administration. “I would imagine there is a path to take them off,” he said, describing the shift as a success of the tariff policy.

Tariff pressure ‘achieved its goal’

Bessent said the Trump administration had imposed the 25 per cent tariff to discourage India from buying Russian oil after the Ukraine invasion. According to him, Indian refiners had significantly increased their intake of discounted Russian crude, but those purchases have since “collapsed”.

“We put twenty-five per cent tariffs on India for buying Russian oil, and the Indian purchases by their refineries of Russian oil have collapsed. So that is a success,” he said, adding that the tariffs could now be reconsidered.

Russian oil import surge and reversal

Bessent added that before the Ukraine war, Russian crude accounted for just two to three per cent of India’s refinery intake. Following Western sanctions, heavily discounted Russian oil pushed that share into the high teens, boosting refinery margins.

However, after Washington’s tariff move, Indian refiners began cutting back Russian supplies and diversifying their crude basket, sourcing more oil from West Asia, Africa and Latin America.

Sharp criticism of Europe

Bessent also criticised European countries, accusing them of indirectly financing Russia’s war effort. He pointed out that while European governments publicly opposed Russian energy, they continued buying refined products made from Russian crude processed in Indian refineries.

Calling it an “act of irony and stupidity”, he said Europe was effectively funding the very conflict it claimed to oppose.

India, however, has restated its consistent position on energy sourcing, noting that decisions on oil imports are driven by global market conditions and current circumstances.