US hints at rolling back half of tariffs on India after drop in Russian oil imports

PTC Web Desk: The United States has signalled a possible softening of its tough trade stance on India, with Treasury Secretary Scott Bessent indicating that Washington could consider withdrawing a significant portion of the steep tariffs imposed under the Donald Trump administration.

In an interview with Politico, Bessent said India’s recent decision to sharply scale down purchases of Russian crude oil had opened the door for easing trade penalties, including the rollback of up to 25 percentage points of the total 50 per cent tariff currently levied on Indian goods.

The tariffs were imposed in two phases. The first 25 per cent duty was justified by the US on grounds of alleged trade imbalances, while the second tranche was introduced as a punitive step against India’s continued oil trade with Russia, at a time when Washington was seeking to economically isolate Moscow.

“Our 25 per cent tariff on India has been a huge success,” Bessent said, claiming that Indian imports of Russian oil had “collapsed” in recent months. While the tariffs remain in place for now, he suggested that circumstances had changed enough to warrant a reconsideration. “I would imagine there is a path to take them off now,” he added.

Bessent’s remarks suggest a possible recalibration of the Trump administration’s hardline approach towards India, particularly as both sides have been engaged in multiple rounds of discussions to mend ties and explore a broader trade agreement.

Tensions between New Delhi and Washington escalated after Trump announced the tariffs in July last year, triggering concerns among exporters and industry bodies in India. Any partial rollback could provide relief to Indian businesses while signalling renewed momentum in bilateral trade negotiations.