The U.S. government hinted it may ease the additional tariff imposed on India, citing a sharp drop in India's imports of Russian crude oil.
On the 23rd (local time), U.S. Treasury Secretary Scott Bessent said in an interview with the political news outlet Politico, "Purchases of Russian crude by Indian refiners have essentially collapsed," adding, "This is a success story."
Minister Bessent added, "The 25% tariff related to Russian crude oil remains in place for now, but I see a path to lifting it," signaling the possibility of withdrawing the additional tariff on Indian products.
According to Reuters, India's actual imports of Russian crude fell to the lowest level in nearly two years as of last December. As crude from the Middle East–centered Organization of the Petroleum Exporting Countries (OPEC) filled the gap, OPEC's share of India's total crude imports hit an 11-month record high.
Earlier, U.S. President Donald Trump in August last year doubled the tariff on Indian products to 50%, taking issue with India's continued imports of Russian crude. This pushed trade tensions between the United States and India to a peak.
India, the world's No. 3 oil importer, has faced criticism for serving as a funding source for Russia's war by buying large volumes of discounted Russian crude that came onto the market after the outbreak of the war in Ukraine. President Trump has pressured that if India does not cut its import volume, he would raise the tariff barrier.