US Considers Lifting Tariffs on India Amid Shift in Russian Oil Dynamics

US Treasury Secretary Scott Bessent hints at lifting 25% tariffs on India, as Indian purchases of Russian oil plummet. This development comes amid legislative threats and ongoing Indian-EU trade discussions. Despite tensions, Europe aims to finalize a historic trade agreement with India.

At the World Economic Forum in Davos, US Treasury Secretary Scott Bessent indicated the possibility of removing the additional 25% tariffs on India, a consequence of the nation's shrinking reliance on Russian oil due to those very tariffs.

Bessent celebrated this as a strategic victory, hinting at potential diplomatic negotiations to further address the tariffs, which have played a significant role in transforming trade dynamics between the US and India amid Congress deliberations on severe sanctions against Russian oil buyers.

As Europe and India gear up for substantial trade talks, Bessent criticized European buying patterns as counterproductive in the geopolitical climate, while European Commission President Ursula von der Leyen emphasized the importance of a potential India-EU Free Trade Agreement.

(With inputs from agencies.)