United States Treasury Secretary Scott Bessent signalled the potential removal of an additional 25 per cent tariffs on India following a sharp reduction in Indian imports of Russian oil, a Reuters report said.
“Indian purchases by their refineries of Russian oil have collapsed. So that is a success. The tariffs are still on, 25 per cent tariffs for Russian oil are still on. I would imagine there is a path to take them off” Reuters quoted Bessent
India’s Russian oil imports in December dropped to their lowest level in two years, lifting OPEC’s share of Indian oil imports to an 11-month high, Reuters reported on Friday.
Bessent’s remarks came amid heightened pressure from Trump, who earlier warned that tariffs could increase further unless India curtails its Russian oil purchases.
Trade tensions escalated in August when US President Donald Trump doubled tariffs on Indian goods to 50 per cent, including a 25 per cent levy in response to India’s imports of Russian crude.
Trump on India-US trade deal
Earlier this week, US President Donald Trump stated he will have a ‘good’ trade deal with India. Trump said here last evening that the US will have a good trade deal with India and described Prime Minister Narendra Modi as a “fantastic man” and a friend for whom he has great respect.
“I have great respect for your Prime Minister. He’s a fantastic man and a friend of mine. We are going to have a good deal,” Trump had said.
Asked about Trump’s remarks, Vaishnaw told PTI, “Given India’s position and deep engagement on trade matters, it is very encouraging”. Union Minister Ashwini said it is very encouraging, given India’s position and deep engagement on global trade matters.
Meanwhile, the major Indian refiners such as Bharat Petroleum and Indian Oil are increasing and diversifying their oil purchases to Brazil, the Middle-East and Africa as they cut down Russian oil purchases.
Indian refineries diversify oil purchase
According to a Reuters report, Bharat Petroleum Corporation will buy 12 million oil barrels for $780 million from Brazil’s Petrobas in FY27. The report added that Bharat Petroleum will sign the oil purchase deal with Brazil’s national oil company next week at the India Energy Week conference.
Similarly, according to another Reuters report, Indian Oil Corporation has bought 7 million barrels of oil, including from Brazil’s Petrobras, for March loading to replace Russian oil. The report added that Indian Oil has also bought 2 million barrels of Brazil’s Buzios oil from Petrobras under its optional contract that provides flexibility to strike a deal at mutually agreed terms.