US signals relief for India with possible rollback of 25% tariff: 'There is a path'

US Treasury Secretary Scott Bessent.

US Treasury Secretary Scott Bessent has signaled that there may be a path to slash 25 percent tariff imposed of India over its import of Russia oil.

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.

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 25% tariffs on India for buying Russian oil, and the Indian purchases by their refineries… have collapsed," Bessent told Politico on the sidelines of World Economic Forum in Davos.

“I would imagine there is a path to take them off,” he said, describing the shift as a success of the tariff policy.

He further added that the US’s European allies refused to impose the tariff on India for buying Russian energy because they wanted to sign a big trade deal with India.

Trump's tariffs

India still continues to face a total of 50 percent tariffs owing to the Trump administration’s punitive measures against countries engaging in trade with Russia despite the country’s war in Ukraine.

Earlier in August 2025, Trump doubled duties on Indian imports to 50%, citing India’s energy ties with Russia as the reason.

However, while speaking exclusively to Moneycontrol in Davos, Trump called Prime Minister Narendra Modi his close friend and expressed confidence that the United States and India would reach a trade agreement despite ongoing tension over heavy tariffs.

“I have great respect for your Prime Minister. He’s a fantastic man and a friend of mine," Trump said.