Archive · 25 Jan 2026
US May Remove 25% Tariff on India
The US put a 25% tax on some Indian goods to make India stop buying oil from Russia.
The US says this tax worked because India is now buying much less Russian oil.
The US might remove this tax now that India is buying less Russian oil.
India said the tax was unfair, but the US thinks it was successful.
The tax is still in place for now.
The US also criticized Europe for buying oil from India that was made from Russian oil, saying it's helping Russia.
Europe and India are working on a big trade deal.
US Treasury Secretary Scott Bessent hinted at removing the 25% tariff on Indian goods imposed to deter Russian oil purchases.
Indian purchases of Russian oil have reportedly collapsed, with a 35% month-on-month decline in January 2026.
The tariff was imposed in August 2025 by then US President Donald Trump to limit Russia's revenue during the Ukraine war.
India criticized the tariff as unfair, but the US views it as a success in influencing India's oil sourcing decisions.
Only three Indian refiners continued purchasing Russian crude, indicating a significant reduction but not a complete halt.
- Who
- US Treasury Secretary Scott Bessent and Indian government officials
- What
- Consideration of removing 25% tariff on Indian goods
- When
- January 2026
- Where
- World Economic Forum in Davos and New Delhi
- Why
- To encourage India to stop buying Russian oil, which has reportedly collapsed
US Perspective
Indian Perspective
Tariff Effectiveness
US Perspective
The US views the 25% tariff as a success, claiming it significantly reduced India's purchases of Russian oil.
Indian Perspective
India maintains that securing affordable energy is its priority and has criticized the tariff as unfair.
Future of Tariffs
US Perspective
The US suggests there is a diplomatic path to remove the tariffs if India shifts its energy sourcing.
Indian Perspective
India is closely monitoring developments and has not indicated a change in its energy policy.
European Trade Policy
US Perspective
The US criticizes Europe for buying refined Russian oil from India, calling it an act of irony and stupidity.
Indian Perspective
The EU is focused on finalizing a comprehensive trade agreement with India, viewing it as a key economic partner.
- Tariff Rate
- 25%
- Imposed By
- US President Donald Trump
- Imposition Date
- August 2025
- Purpose
- To discourage India from buying Russian oil
- Impact on Indian Oil Imports
- 35% month-on-month decline in January 2026
- Current Status of Tariff
- Still in place
- US Treasury Secretary
- Scott Bessent
- Event Where Statement Made
- World Economic Forum in Davos
- Proposed US Bill
- 500% duty on countries purchasing Russian oil
- India's Energy Policy
- India First
- EU-India Trade Agreement
- Mother of all deals
- EU-India Market Size
- 2 billion people, 25% of global GDP
Sources
US sees path to removing India tariff linked to Russian oil, says Scott Bessent
US Treasury Secretary Bessent says they may think of removing 25% tariff on India ‘now that purchase of Russian oil has collapsed’
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