US may drop 25% tariff on Indian oil imports
Business
The US is thinking about removing its 25% tariff on India's Russian oil buys—a rule the US imposed.
US Treasury Secretary Scott Bessent shared this update at Davos, noting the tariff led to a big drop in India's Russian oil imports.
Why does it matter?
Since the tariff kicked in, India's Russian oil imports have fallen, with several refiners reducing or halting purchases.
To keep up with demand, India has turned to West Asia, the US, and South America—costing an extra $6-7 billion and bumping up expenses by 2%.
Even if the tariff goes away, a new US bill could slap massive tariffs (up to 500%) if India starts buying more Russian oil again.
This back-and-forth affects global energy prices and puts pressure on how India sources its fuel.