New Delhi / Davos – January 24, 2026

In a significant diplomatic signal that could reshape US-India trade relations, US Treasury Secretary Scott Bessent has hinted that the United States may consider reducing the heavy tariffs imposed on Indian imports after a sharp fall in New Delhi’s purchases of Russian oil.

Speaking on the sidelines of the World Economic Forum in Davos, Bessent highlighted that additional tariffs imposed on India — originally meant to curb Russian oil imports — have succeeded in their objective, with Indian refinery purchases of Russian crude having “collapsed.” While reaffirming that the 25% tariff remains in place, he added that there may now be “a path to take them off,” opening the door for potential tariff relief.

The tariffs, originally introduced by the Trump administration in August 2025 and later increased to 50% — including a 25% penalty linked to Russia oil purchases — strained bilateral trade, affecting a wide array of Indian exports to the United States.

Bessent described the fall in Russian oil imports as a “huge success” of the tariff policy, underscoring Washington’s goal to reduce countries’ dependence on Russian energy. However, he emphasised that the current duties remain intact until a formal decision is reached.

Indian officials have not yet issued an official response to the comments. New Delhi has previously maintained that its energy procurement decisions are driven by market dynamics and national interests rather than external pressure.

The development comes amid broader geopolitical tension over energy trade and sanctions linked to the Russia-Ukraine war, with the US actively seeking to limit Moscow’s revenue sources. The possibility of a tariff rollback could mark a turning point in resolving one of the most contentious economic disputes between New Delhi and Washington in recent years.

As negotiations continue, industry leaders and exporters will be watching closely, as any reduction in tariffs could ease pressure on Indian exporters and potentially rejuvenate bilateral trade prospects.