US hints 'path' to scrap 25% levy on India over Russia oil

US treasury secretary Scott Bessent said on Saturday there is a “path” to remove the 25% tariffs imposed on India as a penalty for buying Russian oil, noting that such purchases by Delhi from Moscow have “collapsed”.

- Shashank Mattoo and Rajeev Jayaswal

The levy is part of a 50% tariff that goods imported from India are subject to in the US, though a large number of goods, including electronics, are exempt from this duty. Of this, the remaining 25% is on account of what Washington calls “reciprocal” measures, in response to Indian levies on American products.

Bessent on Friday defined the punitive sanctions imposed on India as a “success”.

“We put 25% tariffs on India for buying Russian oil. And the Indian purchases by their refineries of Russian oil have collapsed. So that is a success. The tariffs are still on. The 25% Russian oil tariffs are still on,” Bessent said in an interview with Politico.

“I would imagine that there is a path to take them off. So that’s a check and a huge success,” he added.

The treasury secretary also criticised Europe for not imposing tariffs on India, accusing European allies of prioritising trade interests over sanctions enforcement.

“Our virtue-signalling European allies refused to do it (impose tariffs) because they wanted to sign this big trade deal with India,” he said.