US may roll back 25% tariffs on India: Treasury Secretary
What's the story
United States Treasury Secretary Scott Bessent has hinted at a possible rollback of the 25% tariffs on India. The tariffs were imposed in two phases: the first 25% due to alleged trade imbalances, and the second 25% as a punitive measure for India's purchase of Russian oil. In an interview with Politico, Bessent said that India's reduction in Russian oil imports has created conditions for easing these tariffs.
Tariff details
Tariffs imposed in 2 phases, says Bessent
The US had imposed the tariffs in two phases. The first 25% duty was imposed over alleged trade imbalances with India, while the second was a punitive measure for India's continued purchases of Russian crude oil amid US sanctions on Moscow. "Our 25% tariff on India has been a huge success. Indian purchases of Russian oil have collapsed," Bessent told Politico.
Oil import reduction
Bessent claims India's Russian oil purchases have collapsed
Speaking to Fox News at the World Economic Forum in Davos, Bessent said India has significantly reduced its Russian oil imports. He claimed that before the Ukraine invasion, only 2-3% of India's oil came from Russia. After sanctions and discounted prices, this share rose into the high teens. However, market trackers expect India to continue importing Russian crude unless there's direct government intervention.
Proposed legislation
US senator proposes bill to penalize countries importing Russian oil
The renewed focus on Russian oil imports comes after US Senator Lindsey Graham's comments about a bipartisan Bill on Russian sanctions. The proposed legislation would allow the US to penalize countries, including India, for importing discounted Russian oil. Graham said this bill would give President Trump "tremendous leverage against countries like China, India, and Brazil."