US Treasury Hints at Lifting India Tariffs as Oil Imports Drop and EU Trade Deal Looms

Welcome to India Tariff News and Tracker, where we break down the latest on US tariffs impacting India under President Trump. In a major development from the World Economic Forum in Davos, US Treasury Secretary Scott Bessent has hinted at a path to lift the additional 25 percent tariffs on Indian goods, imposed last August as punishment for buying Russian oil. According to the Economic Times, Bessent stated, "We put a tariff on India for buying Russian oil. Indian purchases of Russian oil have collapsed. The tariffs are still on. I would imagine there is a path to take them off… So that’s a check and a huge success." Hindustan Times reports that these 25 percent duties form part of the broader 50 percent tariffs on many Indian exports to the US, though electronics and others are exempt. Data from Kpler shows India's Russian oil imports averaged 1.18 million barrels per day in early January 2026, down 30 percent from last year and the 2025 average, validating the US pressure. Bessent also slammed European nations for buying refined Russian oil from India, calling it indirect financing of Russia's war. This comes amid Trump's warnings of even steeper hikes, with a proposed US Congressional bill eyeing 500 percent duties on persistent Russian oil buyers, as noted by India's external affairs ministry spokesperson Randhir Jaiswal. Meanwhile, India is countering with bold moves. Streamline Feed and Khaleej Times report that New Delhi and the EU are set to finalize the "Mother of All Deals," a historic free trade agreement slashing tariffs on over 90 percent of goods, just days from now on January 27 during Republic Day celebrations with EU leaders Ursula von der Leyen and António Costa. This $136 billion trade corridor targets textiles, electronics, and more, hedging against US uncertainty. Talks for a US-India bilateral deal continue positively, per Commerce Minister Piyush Goyal's recent meetings, with potential to roll back the 50 percent tariffs. India stands firm on its energy autonomy, but these shifts signal de-escalation possibilities if oil trends hold. Thanks for tuning in, listeners—subscribe for weekly updates on tariffs and trade. This has been a Quiet Please production, for more check out quietplease.ai. For more check out https://www.quietperiodplease.com/ Avoid ths tariff fee's and check out these deals https://amzn.to/4iaM94Q This content was created in partnership and with the help of Artificial Intelligence AI.