The United States has indicated a possible easing of trade tensions with India, with treasury secretary Scott Bessent suggesting that the additional 25 percent tariff imposed over New Delhi’s purchase of Russian oil could be rolled back, citing a sharp decline in such imports by Indian refineries.

Bessent said there is now “a path to take them [the extra 25 per cent] off” after Indian refiners sharply cut imports from Moscow.

Speaking to Politico on the sidelines of the World Economic Forum in Davos, Bessent said the punitive duty had achieved its objective.

“We put 25 per cent tariffs on India for buying Russian oil, and the Indian purchases by their refineries… have collapsed,” he said.

“That is a success. The 25 per cent Russian oil tariffs are still on. I would imagine there is a path to take them off now. So that’s a check and a huge success,” Bessent added.

India currently faces a total tariff burden of 50 per cent on its exports to the US, after President Donald Trump doubled duties in August 2025, citing New Delhi’s energy ties with Russia.

Many analysts believe that the extra tariffs on India are a bargaining tool in the ongoing trade negotiations with India that have been dragging on.

Ergo, Bessent’s remarks may be interpreted as a sign of movement in those talks.

Bessent’s comments contrast with recent remarks by US commerce secretary Howard Lutnick, who had suggested the trade talks stalled because Prime Minister Narendra Modi “didn't call” Trump when it was needed — a claim India swiftly rejected.

Optimism resurfaced after the new US ambassador to India Sergio Gor said trade negotiations between the two countries were still underway.

Trump also struck a conciliatory note in Davos while speaking to Moneycontrol, News18’s sister publication. “I have great respect for your Prime Minister. He’s a fantastic man and a friend of mine,” Trump said, adding that he was confident both sides would reach a trade agreement despite tariff-related tensions.

Trump has repeatedly described Modi as a close friend and said the two leaders remained in regular contact.

Conflicting claims on India-Russia oil trade

Bessent’s assertion that Indian refiners have cut Russian oil imports echoes earlier claims by Trump, who said in November that India had “largely stopped” buying oil from Russia.

“They (trade talks with India) are going good, he stopped buying oil from Russia largely. He (PM Modi) is a friend of mine, and we speak and he wants me to go there. We will figure that out, I will go...,” Trump had said.

However, India has never officially confirmed such a shift. After Trump claimed in October 2025 that Modi had “assured” him India would stop buying Russian oil, New Delhi dismissed the assertion, saying no such conversation had taken place.

Davos comments reinforce earlier statements

Earlier this week, speaking to Fox Business, Bessent had said, “India started buying Russian oil after the (Ukraine) conflict began, but President Trump put a 25% tariff of them and India has geared down and has stopped buying Russian oil.”

He also referred to a bill introduced by Senator Lindsey Graham proposing a 500% tariff on secondary purchases and resale of Russian oil. “We will see whether that passes,” Bessent said. “We don’t believe that President Trump needs that authority, that he can do it IEEPA, but that the Senate wants to give him that authority.”

‘Good deal’ expected

Bessent’s comments come days after Trump again expressed optimism about bilateral ties, saying at Davos that India and the US were “going to have a good deal,” even as the future of tariff relief remains contingent on Washington’s assessment of India’s energy trade with Russia.