US Treasury Secretary Scott Bessent hints that tariffs on Indian imports could be reduced to 25% as Indian refineries cut Russian oil purchases.
India-US Trade Talks Update Could 50% Tariffs Be Cut to 25% (Source: X)
Amid ongoing trade negotiations between India and the United States, a senior official in the Donald Trump administration has hinted that the current 50% tariffs on Indian imports could be lowered. This move comes as trade relations between the two countries continue to be closely monitored.
US Treasury Secretary Scott Bessent told Politico that Indian refineries have significantly reduced their purchases of Russian oil, which was the reason cited for the US doubling tariffs in August 2025.
“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,” Bessent said.
Although the tariffs are still in place, Bessent hinted at the possibility of their removal in the future: “The tariffs are still on. I would imagine there is a path to take them off,” he added.
In August 2025, during a global tariff spree, Donald Trump doubled US duties on Indian imports to 50%, citing India’s energy trade with Russia as the main reason. Bessent’s recent comments indicate that the US administration may now reconsider this move in light of reduced Russian oil purchases by India.
Bessent’s statement also suggests progress in ongoing India-US trade talks, offering a more positive outlook than recent remarks from US Commerce Secretary Howard Lutnick, who had claimed that a potential deal collapsed because PM Narendra Modi “didn’t call” Trump. India quickly rejected this claim.
Further optimism comes from the new US ambassador to India, Sergio Gor, who confirmed that trade negotiations between the two nations are still active.
Bessent’s remarks also raise questions about the current India-Russia energy trade. He is not the first US official to claim that India has reduced Russian oil imports.
Former President Trump had made a similar statement in November 2025, “They (trade talks with India) are going good, he stopped buying oil from Russia largely. He (PM Modi) is a friend of mine, and we speak and he wants me to go there. We will figure that out, I will go…”
However, India has never officially confirmed these claims. After Trump’s October 2025 statement that PM Modi had “assured” him India would halt Russian oil purchases, New Delhi denied that any such conversation took place.
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