Rama Krishna Sangem
US President Donald Trump is turning positive towards India. He is likely to waive the 25 per cent extra tariffs imposed on India for buying Russian oil. As he wanted, India almost stopped importing oil from Russia and this has definitely pleased the American president. If this is an indication, Indian stock markets will soon a boom. Indian exports to America will go up too.
Treasury Secretary Scott Bessent has signalled that the Donald Trump-led administration could consider rolling back half of the 50 per cent tariffs imposed on India, citing what he described as a sharp reduction in New Delhi’s purchases of Russian crude oil in recent months. Here are the details of a story Excel India curated.
In an interview with an American news outlet Politico, Bessent said India’s move to scale down imports of Russian oil had created conditions favourable for easing at least 25 per cent tariffs levied on Indian goods.
The United States had imposed the tariffs in two tranches. While 25 per cent duties were slapped on India over alleged trade imbalances, another 25 per cent levy was introduced as a punitive measure in response to India’s continued purchases of crude oil from Russia, even as Washington sought to tighten economic pressure on Moscow.
Our 25 per cent tariff on India has been a huge success. Indian purchases of Russian oil have collapsed. The tariffs are still on. I would imagine there is a path to take them off now,” he told Politco.
Bessent in addition said that the European Union has refrained from imposing tariffs on India because it “wants to sign a big trade deal” with New Delhi, calling the Europeans’ action “stupid” for purchasing refined energy products from India.
Speaking to Fox News on the sidelines of the World Economic Forum in Davos last week, Bessent claimed that India, the world’s third-largest oil importer, has significantly scaled back its purchases of Russian oil.
Trump softening on India?
“India started buying Russian oil after the conflict began, but President Trump put a 25 per cent tariff on them, and India has geared down and has stopped buying Russian oil,” Bessent claimed. This shows Trump is softening on India, after his run-off with Europe since recently on Greenland issue.
His remarks point to a possible recalibration of the Trump administration’s hardline trade stance towards India, even as both countries have been engaged at various levels in recent months to reach a mutually beneficial trade deal and ease tensions that arose between New Delhi and Washington after Trump announced the tariffs in August last year.
Recent reports suggested that private firms in India have reduced imports of Russian oil. However, New Delhi has maintained that purchases from Russia continue unabated. Trade experts see this softening of Trump’s stand towards India as a step in the direction of both the countries signing a trade deal soon.
