US hints tariff relief for India as Scott Bessent says Trump-era penalties over Russian oil purchases may soon be rolled back. Photo: X.
US Treasury Secretary Scott Bessent has hinted that India could soon see relief from additional tariffs imposed by the Donald Trump administration. Speaking at the Davos 2026 conference in Switzerland this week, Bessent suggested that Washington may reconsider the extra 25% tariff imposed on India for its purchase of Russian oil, a penalty introduced as part of broader US measures targeting countries trading with Moscow amid the Ukraine war.
India currently faces a cumulative 50% tariff from the Trump administration, 25% as part of general trade measures and an additional 25% linked specifically to its Russian oil imports.
Addressing an audience at the USA House during the Davos summit, Bessent said the tariff policy had already delivered the intended outcome.
“We put 25% tariffs on India for buying Russian oil, and the Indian purchases by their refineries… have collapsed,” Bessent said.
Calling the move a success, he added, “that is a success. The 25% Russian oil tariffs are still on. I would imagine there is a path to take them off now. So that’s a check and a huge success.”
His remarks suggest that the Trump administration may now be open to easing the additional penalties, given what it views as India’s compliance.
Bessent’s Davos comments echo statements he made earlier this week during an interview with Fox Business, where he claimed India had effectively stopped buying Russian oil following the tariff hike.
“India started buying Russian oil after the (Ukraine) conflict began, but President Trump put a 25% tariff on them and India has geared down and has stopped buying Russian oil,” Bessent said.
However, India has never officially confirmed such a move.
During the same Fox Business interview, Bessent also addressed a controversial bill introduced by US Senator Lindsey Graham, which proposes imposing a massive 500% tariff on secondary purchases and the resale of Russian oil.
“We will see whether that passes,” Bessent said.
“We don’t believe that President Trump needs that authority, that he can do it under IEEPA, but that the Senate wants to give him that authority.”
The comments underline ongoing divisions in Washington over how aggressively to escalate economic pressure on Russia and its trading partners.
Bessent’s remarks come shortly after President Donald Trump himself indicated that a favourable agreement between India and the United States could be imminent.
Speaking to Moneycontrol on the sidelines of Davos 2026, Trump said a “good deal” with India was expected, while once again praising Prime Minister Narendra Modi.
Despite persistent speculation about strained ties due to steep US tariffs, Trump has continued to refer to Modi as a “good friend.”
While the latest comments from Washington raise hopes of tariff relief for India, they have also reignited questions about the actual status of India’s energy trade with Russia.
Bessent is not the first senior US official to claim that New Delhi has scaled back its Russian oil imports. Trump himself made a similar assertion in November, stating that India had “largely stopped” purchasing Russian oil.
“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…,” Trump had said.
Despite repeated assertions from US leaders, India has consistently refrained from confirming any such shift in policy.
In October 2025, after Trump claimed that Prime Minister Modi had “assured” him India would halt oil trade with Russia, New Delhi publicly dismissed the statement, saying no such conversation had taken place.
The Indian government has maintained silence on whether Russian oil imports have been reduced or stopped.
Zubair Amin is a Senior Journalist at NewsX with over seven years of experience in reporting and editorial work. He has written for leading national and international publications, including Foreign Policy Magazine, Al Jazeera, The Economic Times, The Indian Express, The Wire, Article 14, Mongabay, News9, among others. His primary focus is on international affairs, with a strong interest in US politics and policy. He also writes on West Asia, Indian polity, and constitutional issues. Zubair tweets at zubaiyr.amin
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