It’s Saturday, January 24, 2026, and Davos is buzzing with a major trade “thaw” between Washington and New Delhi. US Treasury Secretary Scott Bessent just dropped a massive hint that the aggressive 25% additional tariff on India—imposed because of its Russian oil deals—could be on the way out.
The thing is, the US is calling this a “huge success” because they claim India’s Russian oil imports have basically “collapsed.” Or nothing.
Also Read | Imran Khan and Bushra Bibi Sentenced to 17 Years in Jail
The Tariff “Path”: Field Notes
It’s an ongoing situation where the Trump administration is using tariffs as a surgical tool. Here’s the ground reality of Bessent’s remarks to Politico:
-
The “Collapse” Claim: Bessent says Indian refineries have drastically cut their Russian crude purchases. Before the war, it was 2-3%; it spiked to nearly 20%, but the 25% US penalty (pushed in August 2025) has reportedly made those barrels too expensive to handle. Those too.
-
The Diplomatic Carrot: Bessent hinted that while the tariffs are still active, there is now a “path” to take them off. The thing is, this would likely involve a formal shift in India’s energy sourcing. Or nothing.
-
The “Ironic” European Angle: Bessent didn’t hold back on the EU. He called their behavior “ironic and stupid,” arguing that by buying refined fuel from India (sourced from Russian crude), Europe is “financing the war against themselves.” Let’s be real—the rhetoric in Davos is getting spicy.
-
New Delhi’s Stance: MEA spokesperson Randhir Jaiswal remains cool under pressure. He says India is “closely monitoring” a new US bill that could hike duties to a staggering 500%. But here’s the kicker—India is sticking to its “India First” policy. Affordable energy for 1.4 billion people isn’t up for negotiation
Also Read | Imran Khan and Bushra Bibi Sentenced to 17 Years in Jail
The Global Trade Tug-of-War (2026)
| Feature | The US Position (Bessent) | The EU Position (von der Leyen) |
| Strategy | Punitive tariffs to force energy shifts. | “Mother of all deals” (FTA) to deepen ties. |
| India Status | Success story; imports “collapsed.” | Indispensable partner; market of 2 billion. |
| End Goal | Total decoupling from Russian crude. | Comprehensive Strategic Agenda 2030. |
| Key Event | 25% tariff removal “path” hinted. | Republic Day visit (Jan 26) to sign the deal. |
And Here’s the Kicker…
While the US talks about “paths” to removing tariffs, the EU is ready to sign what Ursula von der Leyen calls the “mother of all deals.” She’s headed to New Delhi next weekend (Jan 25-27) as the Chief Guest for Republic Day. The thing is, the EU is ignoring the oil controversy to secure a trade pact covering 25% of global GDP. Those too.
One side comment—US Senator Lindsey Graham says Trump already “greenlit” the 500% duty bill as a leverage tool. It’s an ongoing situation where India is being wooed by Europe and squeezed by Washington at the exact same time. Or nothing.
Also Read | Imran Khan and Bushra Bibi Sentenced to 17 Years in Jail
End…
