U.S. Treasury Secretary Scott Bessent indicated at the World Economic Forum in Davos that the Trump administration may lift a 25% tariff imposed on certain Indian imports, because the tariff was imposed to make India stop buying Russian oil, and now the ‘Indian purchase of Russian oil has collapsed.’
Breaking: US Treasury Secretary says 25% tariff penalty on India could be removed
"Our 25% tariff on India has been a huge success. Indian purchases of Russian oil have collapsed. The tariffs are still on. I would imagine there is a path to take them off now" pic.twitter.com/o2GHLnSCjT
— Shashank Mattoo (@MattooShashank) January 24, 2026
Speaking on a Davos panel, Bessent noted recent data showing a 35% month-on-month drop in India’s Russian crude imports in January 2026, reaching two-year lows. Only three Indian refiners continued purchases, suggesting the tariff threat has had a measurable deterrent effect without fully halting trade.
“The Indian purchases of Russian oil have collapsed. So that is a success. The 25% tariffs are still on. I would imagine that there is a path to take them off. That is a check and a huge success. I would also like to point out that our virtue signalling achieved its goal.
US tariffs on India were introduced as secondary sanctions to discourage India from buying discounted Russian crude, the import of which had increased from 2% to nearly 40% in the first two years of the Ukraine war.
As of now, Indian refiners are getting Russian crude intotheir refineries meant only for the domestic market. India has significantly diversified its crude purchase.
Bessent has not confirmed the removal of 25% tariffs, but has hinted the reduction in imports of Russian oil as a signal for pragmatic reengagement.
