Washington seeks to eliminate tariffs on Russian oil imported by India

Trade tensions between the United States and India could ease soon. During her speech at this week’s Davos forum, U.S. Treasury Secretary Besant suggested that the 25% tariffs imposed on oil imports from Russia could be lifted if New Delhi reorients its energy sources. This possibility marks a significant shift in the trade sanctions strategy implemented by Washington.

The tariff has achieved its strategic goal

According to Odaily, Besant described the results as a “great success” because the tariff measures have caused a drastic drop in Russian crude oil purchases by Indian refineries. Politico provided additional details about the collapse in these trade volumes. The 25% tariff has proven effective in discouraging energy trade between New Delhi and Moscow, achieving exactly what Washington aimed for: reducing India’s dependence on Russian energy supplies and limiting the revenue Russia earns from its oil exports.

Diplomatic negotiation as an alternative

However, the official also left the door open for negotiation. Besant indicated that although the tariffs remain in place, there is a “diplomatic route” for their removal. This path would require India to diversify its energy sources, gradually replacing the volumes it currently imports from Russia with supplies from other origins. In this way, Washington would be willing to lift the trade sanctions as a recognition of India’s change in energy policy.

Economic impact on the United States

Besant emphasized that these trade measures have provided substantial benefits to the U.S. economy. The tariffs not only decouple global energy transactions but also strengthen Washington’s trade position in current geopolitical negotiations, demonstrating that tariff policy remains a decisive tool in international trade relations.