The United States has signalled potential flexibility regarding the 25% tariff imposed on India over Russian oil purchases, with Treasury Secretary Scott Bessent indicating there could be a pathway to removing the levy.

Policy Success Cited as Basis for Potential Relief

Speaking to Politico on the sidelines of the World Economic Forum in Davos, Bessent expressed optimism about the tariff's removal, stating "I would imagine there is a path to take them off." The Treasury Secretary emphasized that the tariff had achieved its intended purpose.

Tariff Effectiveness Demonstrated

Bessent argued that the tariff had worked as intended, pointing to a significant reduction in Russian oil purchases by Indian refineries. "The purchases of Russian oil by their refineries has collapsed, so that is a success," he stated, while confirming that "the 25% Russian oil tariffs are still on."

The Treasury Secretary's comments suggest that the policy's effectiveness in reducing Indian purchases of Russian oil could serve as justification for its eventual removal, though no specific timeline or conditions were outlined.

Current Trade Policy Status

While Bessent's remarks indicate potential diplomatic flexibility, he made clear that the tariff remains active. The 25% levy was originally imposed as part of broader efforts to limit Russian oil revenues, with India being targeted due to its continued energy purchases from Russia.

The Treasury Secretary's statements at Davos represent the first official indication from the current administration regarding potential modifications to the India-specific tariff policy.

Union Minister of State for External Affairs Kirti Vardhan Singh has expressed confidence that India would remain largely unaffected by potential US tariffs, citing the global recognition of the country's economic resilience. Speaking to reporters at the district headquarters, the Gonda MP emphasized that India's robust economic foundation has garnered international acknowledgment, including from US President Donald Trump.

Economic Resilience Against Trade Pressures

Singh addressed concerns about potential trade tensions, noting that Trump's understanding of India's economic strength has evolved. The minister explained that while Trump had previously spoken about imposing heavy tariffs on India, there is now recognition that such measures would not cause significant damage due to the country's strong economic fundamentals.

The minister highlighted India's strategic advantages in the global marketplace:

Multipolar World Order

Addressing changing global dynamics, Singh observed that the international landscape has transformed from a bipolar structure centered around two major powers to a multipolar world order. This shift reflects the growing influence of multiple nations, including India, in shaping global economic and political discourse.

The minister emphasized that India's strength extends beyond economics to include military capabilities, with the world beginning to acknowledge the country's growing power across multiple dimensions.

Diplomatic Approach to International Relations

Singh noted that international agreements require patience and sustained dialogue, stating that such arrangements are not finalized in a single day and necessitate multiple rounds of discussions at various levels. This approach reflects India's commitment to building lasting partnerships through comprehensive engagement.

Additional Remarks on Governance

The minister also addressed a recent controversy involving Swami Avimukteshwaranand in Prayagraj, emphasizing the importance of maintaining law and order. Singh stressed that individuals in higher positions carry greater responsibility and that no one is above the law, regardless of their status or position in society.