New Delhi, January 24, 2026 : Remarks by US Treasury Secretary Scott Bessent have reopened debate over the future of tariffs imposed on Indian goods over New Delhi’s purchase of Russian crude, even as Washington maintains that its pressure campaign has already achieved its objective.
Speaking on the sidelines of the World Economic Forum in Davos, Bessent said there could be a path toward removing the 25 per cent tariffs levied on Indian imports, arguing that the penalties had sharply reduced India’s intake of Russian oil. According to him, before the Ukraine war, Russian crude accounted for barely two to three per cent of India’s refinery feedstock, a figure that surged after the conflict as Moscow offered deep discounts. He claimed that recent tariff action had led to a collapse in such purchases, calling the move a policy success.
Bessent also criticised what he described as European hypocrisy on Russian energy. He noted that while several European governments publicly condemned Russian oil, they continued to buy refined petroleum products processed in Indian refineries using discounted Russian crude. In his assessment, this practice meant Europe was indirectly financing the same war it claimed to oppose.
The comments came days ahead of the visit to India by European Council President António Luís Santos da Costa and European Commission President Ursula von der Leyen. Both leaders are scheduled to attend the 77th Republic Day celebrations as chief guests and co-chair the 16th India–EU Summit, underlining the sensitive timing of the remarks.
Within the US administration, criticism of India’s trade and energy policies has been consistent. Trade adviser Peter Navarro has repeatedly targeted New Delhi’s tariff structure and framed India’s Russian oil purchases as a national security concern. The issue has also been linked to broader US trade actions, including cumulative tariffs of up to 50 per cent on certain Indian exports.
India has rejected the accusations, reiterating that its energy procurement is guided by market realities and the need to ensure energy security for its population. Officials in New Delhi have described US tariff measures as unfair and unreasonable, stressing that India’s decisions are sovereign and economically driven rather than geopolitical.
Meanwhile, the European Commission has sought to tighten enforcement of sanctions, clarifying that refined oil products derived from Russian crude fall under existing import bans and that individual member states are responsible for implementation and penalties.
As diplomatic engagements intensify in the coming days, the question remains whether Washington will translate Bessent’s remarks into policy action. For now, the tariffs remain in place, even as signals of a possible recalibration add another layer of complexity to already strained US-India trade relations.
