REPORT / BUSINESSBusiness
US signals possible route to remove extra 25% tariff linked to Russian oil, citing drop in India’s purchases
The US Treasury Secretary said there is a “path” to remove the additional 25% tariff imposed on India over Russian oil purchases, arguing that India’s refinery buying from Russia has fallen sharply. The remarks come amid heightened trade focus ahead of India’s Union Budget.
What the US said
US Treasury Secretary Scott Bessent said the additional 25% tariff imposed on India for buying Russian oil could potentially be removed, stating that India’s purchases of Russian oil have “collapsed”.
Why it’s important for markets
- Any easing of tariff pressure could improve sentiment for export-linked sectors affected by higher duties.
- The comments were made around the World Economic Forum in Davos, a forum often used for trade signalling.
- The development is being watched closely in the run-up to India’s Union Budget 2026.
Bessent indicated the tariff remains in place for now, but suggested discussions could open a way to take it off.
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