US may cut tariffs on India as Russian oil imports fall: Scott Bessent

US Treasury Secretary Scott Bessent has suggested that the Trump administration might reduce the 50 per cent tariffs on Indian goods, stating that the purchase of Russian crude by Indian refineries has sharply reduced.

His comments come amid discussions between the two countries over the India-US trade deal. Earlier, US President Donald Trump had imposed 25 per cent tariffs on India to address the trade imbalance between the two countries and another 25 per cent as a penalty for India’s purchase of Russian oil, which Washington claimed was being used by Moscow to fund its war in Ukraine.

‘India’s Russian oil purchase collapsed’

“We put 25 per cent tariffs on India for buying Russian oil. And the Indian purchases, by their refineries, of Russian oil have collapsed. That is a success,” Bessent told Politico in an interview.

Elaborating further, the US Treasury Secretary indicated that even though the tariffs on India are still in place, the Trump administration may reduce or lift them . “The tariffs are still on. I would imagine there is a path to take them off,” he said.

In August 2025, as President Donald Trump pressed ahead with a sweeping round of trade penalties, duties on Indian imports were raised to 50 per cent. The move was framed by the administration as a response to New Delhi’s continued energy ties with Russia.

What US Commerce Secretary said

The latest remarks from Bessent also point to tentative movement in India-US trade negotiations, a shift from the tone struck recently by Commerce Secretary Howard Lutnick.

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In a podcast interview, Lutnick said a potential agreement between the two countries had stalled because Prime Minister Narendra Modi “didn’t call” Trump. The claim was swiftly rejected by India. Momentum appeared to return after the newly appointed US ambassador to India, Sergio Gor, said trade negotiations between the two sides were continuing.

Future of India-Russia oil trade

While Bessent’s comments have raised expectations of lower US tariffs on Indian goods, they have also revived questions over the current state of India’s energy trade with Russia. He is not the first senior US official to suggest that New Delhi has cut back its purchases from Moscow. Trump made a similar assertion in November, saying India had “largely stopped” buying Russian oil.

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“They (trade talks with India) are going good, he stopped buying oil from Russia largely,” Trump said at the time.

“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…”

India has never confirmed those claims. After Trump said in October 2025 that Modi had “assured” him India would end its oil trade with Russia, New Delhi dismissed the statement, saying no such conversation had taken place.