Amid ongoing trade negotiations, a senior official in the Donald Trump administration has suggested that the United States could reduce the current 50% tariffs on Indian imports. The move comes as Washington claims that India has scaled back its purchases of Russian oil, a key reason behind the earlier tariff hike.

US Treasury Secretary Scott Bessent made the remarks during an interview, pointing to what he described as a major shift in India’s energy sourcing.

Russian Oil Cuts Seen as Tariff Success

Bessent said the US decision to impose higher tariffs achieved its objective. According to him, Indian refineries significantly reduced their intake of Russian crude after Washington acted.

“We put 25% tariffs on India for buying Russian oil. And the Indian purchases, by their refineries, of Russian oil have collapsed. That is a success,” Bessent said.

He added that while the tariffs are still in place, the administration may now reconsider its stance.

“The tariffs are still on. I would imagine there is a path to take them off,” he said.

Background of the 50% Tariff Decision

In August 2025, during a broader push to raise import duties on several countries, President Donald Trump doubled tariffs on Indian goods to 50%. He linked the decision directly to India’s continued energy trade with Russia at the time.

The move had strained trade relations between New Delhi and Washington, even as both sides continued talks behind the scenes.

Trade Talks Show Signs of Progress

Bessent’s comments suggest that India-US trade negotiations may be gaining momentum. This marks a contrast with earlier remarks from US Commerce Secretary Howard Lutnick, who had claimed that a potential agreement collapsed due to a lack of direct outreach from Prime Minister Narendra Modi.

India quickly rejected those claims. Optimism returned later after the new US ambassador to India, Sergio Gor, confirmed that trade discussions were still ongoing.

Questions Over India-Russia Energy Ties

The latest US statements have also revived debate over the status of India’s oil trade with Russia. Bessent is not the first senior US figure to say that India has reduced such imports.

In November, Trump had made a similar claim, stating that India had “largely stopped” buying Russian oil.

“They (trade talks with India) are going good, he stopped buying oil from Russia largely. He (PM Modi) is a friend of mine, and we speak and he wants me to go there,” Trump had said.

India Pushes Back on US Claims

Despite repeated assertions from Washington, India has never officially confirmed a halt or sharp reduction in Russian oil purchases. Earlier, when Trump claimed that Prime Minister Modi had assured him of ending oil trade with Moscow, New Delhi dismissed the statement.

Indian authorities clarified that no such conversation took place, maintaining ambiguity over the actual scale of changes in energy imports.

What Lies Ahead

While US officials now hint at tariff relief, uncertainty remains over whether Washington will formally roll back the duties. Much may depend on how trade talks progress and how both sides frame India’s ongoing energy relationship with Russia.