US Treasury Secretary Scott Bessent has signalled that the Donald Trump-led administration might take into account rolling again half of the 50 per cent tariffs imposed on India, citing what he described as a pointy discount in New Delhi’s purchases of Russian crude oil in current months.
Talking in an interview with an American information outlet Politico, Bessent mentioned India’s transfer to scale down imports of Russian oil had created circumstances beneficial for relieving a minimum of 25 per cent tariffs levied on Indian items.
The US had imposed the tariffs in two tranches. Whereas 25 per cent duties have been slapped on India over alleged commerce imbalances, one other 25 per cent levy was launched as a punitive measure in response to India’s continued purchases of crude oil from Russia, at the same time as Washington sought to tighten financial stress on Moscow.
“Our 25 per cent tariff on India has been an enormous success. Indian purchases of Russian oil have collapsed. The tariffs are nonetheless on. I might think about there’s a path to take them off now,” he informed Politco.
He additional mentioned that the European Union has avoided imposing tariffs on India as a result of it “needs to signal an enormous commerce deal” with New Delhi, calling the Europeans’ motion “silly” for buying refined vitality merchandise from India.
Talking to Fox Information on the sidelines of the World Financial Discussion board in Davos final week, Bessent claimed that India, the world’s third-largest oil importer, has considerably scaled again its purchases of Russian oil.
“India began shopping for Russian oil after the battle started, however President Trump put a 25 per cent tariff on them, and India has geared down and has stopped shopping for Russian oil,” Bessent claimed.
His remarks level to a attainable recalibration of the Trump administration’s hardline commerce stance in direction of India, at the same time as each international locations have been engaged at numerous ranges in current months to achieve a mutually useful commerce deal and ease tensions that arose between New Delhi and Washington after Trump introduced the tariffs in August final 12 months.
Current studies steered that non-public corporations in India have diminished imports of Russian oil. Nevertheless, New Delhi has maintained that purchases from Russia proceed unabated.
As a part of efforts to step up stress on Moscow, the Trump administration has been urging international locations, together with India, to chop oil ties with Russia. India has categorically rejected this stress, describing the US motion as “unfair, unjustified and unreasonable” whereas sustaining that its vitality coverage is guided by its personal nationwide curiosity.
India, the world’s third-largest oil importer, emerged as the most important purchaser of discounted Russian crude after Western international locations shunned Moscow following its February 2022 invasion of Ukraine.
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