Donald Trump May Consider Removing 25% Tariff on India, Signals US Treasury Secretary

Washington |
The United States may consider removing the additional 25% tariff imposed on India, according to strong indications given by US Treasury Secretary Scott Bessent. Speaking on recent developments, Bessent stated that the tariff has produced “measurable and successful outcomes,” particularly in influencing India’s energy procurement strategy.

According to Bessent, following the imposition of the additional tariff, India has reduced its crude oil imports from Russia, which was one of the key objectives behind the measure. While the tariff remains in force at present, the US administration does not view it as a permanent policy tool.

Pathway Emerging for Tariff Rollback

Bessent hinted that discussions are underway and a roadmap may be forming for easing trade restrictions.

“I believe there is a pathway developing for removing this tariff. If conditions remain favourable, discussions will move forward, and the United States could provide tariff relief to India,” he said.

This statement has raised expectations of improved trade relations between the two strategic partners in the near future.

Current Tariff Structure on Indian Goods

At present, Indian exports to the US face a cumulative tariff of 50%, comprising:

25% standard tariff, applicable to nearly 55% of Indian exports, and

25% additional penalty tariff, imposed in August 2025, linked specifically to India’s purchase of Russian crude oil.

The penalty tariff was introduced as part of Washington’s broader strategy to discourage countries from increasing energy trade with Russia amid ongoing geopolitical tensions.

Russian Oil Price Cap Tightened

Meanwhile, the G7 nations and the European Union have further tightened the price cap mechanism on Russian crude oil.

Until January 2026, the cap stood at $47.60 per barrel.

From February 2026, it has been reduced to $44.10 per barrel.

Under this framework, if Russian oil is sold above the capped price, it becomes ineligible for insurance, shipping, and financial services provided by Western countries.

Implications for India–US Trade Relations

Any rollback of the additional 25% tariff would be a significant boost for India–US trade relations, easing pressure on Indian exporters and reinforcing India’s role as a key strategic and economic partner for Washington. Analysts believe such a move could also pave the way for broader trade negotiations and long-term economic cooperation between the two nations.