US Treasury Secretary Scott Bessent signalled possible relief from 25% tariffs on India if Russian oil purchases keep falling. This comes amid a 22% drop in India’s Russian oil imports in December 2025, potentially easing trade tensions under President Trump.
US Treasury Secretary Scott Bessent has indicated a potential path to US tariff relief India, tied to the ongoing India Russian oil drop. In an interview, Bessent noted that India’s refinery purchases of Russian crude have collapsed following the imposition of Trump tariffs India.
The development holds significance for South Asia, where energy security and trade balances influence regional economies. India, a major importer, balancing US relations while managing costs could stabilise supply chains affecting neighbours like Pakistan and Bangladesh.
Bessent’s Remarks on Scott Bessent India Ties
Scott Bessent, speaking to Politico, highlighted the impact of US policies. “We put 25 per cent tariffs on India for buying Russian oil, and the Indian purchases by their refineries… have collapsed,” he stated. “That is a path open to roll back the 25 per cent tariff.”
This Scott Bessent India reference points to a shift. The tariffs, part of broader Trump tariffs India, aimed to curb funding for Russia’s Ukraine conflict through oil sales. Imposed in 2025, they added 25% on Indian goods, raising some rates to 50%.
Bessent’s comments suggest conditional US tariff relief India. If India sustains the India Russian oil drop, relief could follow. No timeline was specified.
Data Shows India Russian Oil Drop
Trade figures confirm the decline. India’s Russian oil imports fell 22% to 1.38 million barrels per day in December 2025, the lowest in two years, per Reuters data citing trade sources.
For January 2026, imports are projected at 1.2 million barrels per day, a 35% drop from November 2025’s 1.77 million. This follows tighter US and EU sanctions on Russian shipping.
OPEC’s share in India’s imports rose to an 11-month high in December 2025. US crude accounted for 6.6% of India’s 2025 imports, up from prior years.
The Petroleum Planning and Analysis Cell (PPAC) under India’s oil ministry tracks such data. Refiners now report weekly Russian imports to aid US trade talks.
This India Russian oil drop reflects strategic shifts. Indian refiners like Reliance Industries have cut Russian buys, turning to Middle East and US suppliers.
Impact of Trump Tariffs India
Trump tariffs India escalated in August 2025, doubling rates on some goods to 50%. The 25% levy targeted India’s post-2022 Russian oil surge, which hit 35% of imports in 2025.
The policy aimed to isolate Russia economically. Bessent claimed it succeeded, with India’s purchases halting. Data shows reduction, not cessation.
For South Asia, this affects trade. India’s exports face higher US duties, hitting labour-intensive sectors. Remittances and investments from the US remain vital.
Balancing ties with Russia, a key defence and fertiliser supplier, adds complexity. India continues Sakhalin projects and diamond imports from Russia.
Broader US-India Trade Context
US tariff relief India could boost bilateral trade. India’s 2025 trade deficit with the US narrowed as oil diversification increased American imports.
Private firms like Reliance absorb more US crude, while public units handle Russian volumes. This hybrid approach addresses Trump tariffs India.
Analysts see potential for joint ventures in nuclear power and insurance, protecting agriculture and data localisation.
Background
India ramped up Russian oil post-Ukraine invasion for discounted prices. Volumes peaked at 1.77 million barrels per day in November 2025.
Sanctions on Russian tankers disrupted flows. New US measures in December 2025 targeted shadow fleets, raising costs.
India’s government seeks deals, mandating weekly import disclosures to negotiate relief.
What’s Next
Negotiations may advance in coming months. If the India Russian oil drop persists, US tariff relief India could materialise by mid-2026, easing pressures from Trump tariffs India.
Scott Bessent India discussions signal thawing ties, with energy diversification key.
US tariff relief India remains contingent on sustained reductions.
Published in SouthAsianDesk, January 24th, 2026
Follow SouthAsianDesk on X, Instagram and Facebook for insights on business and current affairs from across South Asia.
