US lifts the extra 25% tariff on Indian goods after India’s shift away from Russian oil.
Trump cites India’s energy sourcing changes and expanded defence cooperation as justification.
Safeguard clause allows reimposition of tariffs if India resumes Russian crude imports.
Tariff removal follows the new India–US interim trade framework with reciprocal commitments.
Donald Trump Revokes 25% Punitive Tariff on Indian Goods, Tied to Russia Oil Commitment
However, the US maintained a safeguard clause and said the Commerce Department, along with the State and Treasury Departments, will monitor whether India resumes importing Russian oil
US President Donald Trump (L) and Indian Prime Minister Narendra Modi (R)
Summary
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The US has removed the additional 25% tariff it had imposed on a wide range of Indian goods last year, after Washington concluded that New Delhi had taken “significant steps” to distance itself from Russian oil and align more closely with US strategic interests.
The decision was formalised through a new executive order signed by President Donald J. Trump, effective from February 7.
"India has committed to stop directly or indirectly importing Russian Federation oil, has represented that it will purchase United States energy products from the United States, and has recently committed to a framework with the United States to expand defence cooperation over the next 10 years," the order stated.
"Effective with respect to goods entered for consumption, or withdrawn from the warehouse for consumption, on or after 12:01 a.m. eastern standard time on February 7, 2026, products of India imported into the United States shall no longer be subject to the additional ad valorem rate of duty of 25% imposed pursuant to Executive Order 14329," it added.
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After reviewing these developments, Trump concluded that India is now “sufficiently aligned” with the US on national security, foreign policy, and economic matters. This, the order said, justified lifting the punitive tariff.
However, the US maintained a safeguard clause. The Commerce Department, along with the State and Treasury Departments, will monitor whether India resumes importing Russian oil. If it does, the officials must recommend whether Trump should reimpose the 25% tariff or take further action.
India-US Interim Deal
India and the United States today announced that they have reached a framework for an Interim Agreement on reciprocal and mutually beneficial trade, marking a significant step forward in the broader US–India Bilateral Trade Agreement (BTA) negotiations launched last year.
While announcing the conclusion of the deal on Monoday in a social media post, Trump claimed that India has agreed to stop buying Russian oil and diversify its crude imports toward the US and potential Venezuelan supplies.
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New Delhi has not confirmed it yet, but Ministry of External Affairs spokesperson Randhir Jaiswal told reporters this week that it remains open to exploring the commercial merits of any new crude supply options, including from Venezuela.
