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‘There Is A Path To Take Them Off’: US Signals Rollback Of 25% Tariff Penalty On India
‘There Is A Path To Take Them Off’: US Signals Rollback Of 25% Tariff Penalty On India
United States Treasury Secretary Scott Bessent has hinted that the government may remove the additional 25% tariff imposed on India over its purchase of Russian oil, which remains in place for now.
While speaking to Politico on the sidelines of the World Economic Forum in Davos, Bessent said, “We put 25% tariffs on India for buying Russian oil, and the Indian purchases by their refineries… have collapsed."
US Treasury Secretary Scott Bessent says the 25% tariff penalty on India could be rolled back.“Our 25% tariff has been a huge success. India's purchases of Russian oil have collapsed. The tariffs are still on but there's a path to take them off now." pic.twitter.com/XaoaVR2dT4
— India First Post (@ifpost47) January 24, 2026
Bessent stated that the US government had imposed the tariff because India was purchasing Russian oil. He claimed that after the imposition of the tariff, the purchases of Russian oil by Indian refineries had declined, and that the step taken by the US government had been successful.
“That is a success. The 25% Russian oil tariffs are still on. I would imagine there is a path to take them off now. So that's a check and a huge success," he added.
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.
🚨#BREAKING:Our European allies have refused to put tariff on India for buying Russian energy. That's because they want to sign a big trade deal with India claims US Treasury Secretary Scott BessentGeopolitics meets trade: Europe prioritizing India ties over sanctions pressure pic.twitter.com/5yuoSIMRjY
— WorldSpeaks (@Worldspeak94111) January 24, 2026
While speaking exclusively to Moneycontrol, which is News18's sister publication 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.
Trump had earlier publicly linked India's trade treatment to its buying of Russian oil, stating that the imports had been reduced by New Delhi in response to US pressure.
“They wanted to make me happy. Basically, Modi is a very good man. He knew I was not happy, and it was important to make me happy," Trump had stated.
He had further warned that India may face swift trade consequences if it doesn't align with the position of Washington on Russian energy.
“We do trade, and we can raise tariffs on them very quickly," he said, further stating, “And it would be very bad for them."
India has not given any assurances regarding curbing of Russian oil imports, while maintaining that the country's energy decisions are guided by national interest and price stability.
Source: News18
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