US Signals Possible Tariff Cut on India as Russian Oil Purchases ‘Collapse’

Amid ongoing trade negotiations between India and the United States, a senior official in Donald Trump’s administration has suggested that steep tariffs imposed on Indian imports could soon be reduced.

US Treasury Secretary Scott Bessent said India has sharply scaled back its purchases of Russian oil — a key reason Washington had doubled tariffs on Indian goods last year. Speaking in an interview with Politico, Bessent claimed the move had delivered the result the US wanted.

“We put 25% tariffs on India for buying Russian oil. And the Indian purchases, by their refineries, of Russian oil have collapsed. That is a success,” he said.

While the tariffs remain in place for now, Bessent hinted that relief could be on the way. “The tariffs are still on. I would imagine there is a path to take them off,” he added.

In August 2025, during a broader push to raise tariffs on multiple countries, the Trump administration had increased duties on Indian imports to 50%, citing India’s energy ties with Russia as the main reason.

Bessent’s comments suggest that India-US trade talks may be gaining momentum — a notable shift from the more pessimistic tone struck recently by US Commerce Secretary Howard Lutnick. In a podcast interview, Lutnick claimed a potential trade deal fell apart because Prime Minister Narendra Modi “didn’t call” President Trump. India quickly dismissed that claim.

Optimism resurfaced after the new US ambassador to India, Sergio Gor, confirmed that trade negotiations between the two countries are still ongoing.

However, Bessent’s remarks have also revived questions about the current state of India’s energy relationship with Russia. He is not the first US official to claim that New Delhi has reduced its reliance on Russian oil.

Trump himself made a similar statement in November, saying India had “largely stopped” buying Russian oil. “They’re doing good in trade talks. He stopped buying oil from Russia largely,” Trump said at the time, referring to Prime Minister Modi.

India, however, has never officially confirmed these claims. After Trump said in October 2025 that Modi had “assured” him India would stop purchasing Russian oil, New Delhi rejected the assertion outright, stating that no such conversation had taken place.