The United States has indicated a potential softening of its trade stance toward India, raising the possibility of rolling back the additional 25% tariff imposed on Indian exports over New Delhi’s purchase of Russian oil. US Treasury Secretary Scott Bessent said there is now “a path” to remove the extra duty after Indian refiners reportedly scaled back imports from Moscow.
Speaking on recent developments, Bessent described the tariff policy as a success, noting that the reduction in Russian oil purchases demonstrated the intended impact of Washington’s pressure. While the 25% tariff linked to Russian oil remains in place for now, his remarks signal growing momentum toward tariff relief amid ongoing bilateral trade negotiations.
India currently faces a combined tariff burden of 50% on exports to the United States after President Donald Trump doubled duties in August 2025, citing India’s continued energy ties with Russia. Analysts have widely viewed the additional tariffs as a negotiating lever rather than a permanent measure, and Bessent’s comments have renewed expectations of progress in talks that had previously stalled.
The renewed optimism contrasts with recent remarks by US Commerce Secretary Howard Lutnick, who claimed negotiations slowed because Prime Minister Narendra Modi failed to reach out to Trump — a statement firmly rejected by India. Adding to the positive signals, newly appointed US Ambassador to India Sergio Gor recently confirmed that trade discussions between the two nations remain active.
Trump himself struck a conciliatory tone during his remarks at the World Economic Forum in Davos, expressing confidence that India and the US would reach a mutually beneficial trade agreement. He reiterated his respect for Prime Minister Modi and described their relationship as friendly and ongoing.
However, conflicting claims continue to surround India’s Russian oil imports. While Bessent and Trump have stated that India has significantly reduced or largely stopped buying Russian oil, Indian authorities have consistently denied making any such commitment. New Delhi has maintained that no formal assurance was given and has not officially confirmed a major policy shift.
As negotiations continue, the prospect of tariff relief remains tied to Washington’s assessment of India’s energy trade decisions. Still, Bessent’s remarks have strengthened expectations that both sides may be moving closer to a broader trade agreement.
