Trump Lifts Extra 25% Tariff on India in New Order
US President Donald Trump has signed an executive order eliminating the additional 25% tariff imposed on imports from India, which was linked to New Delhi’s purchases of Russian oil. The move, effective from 12:01 a.m. Eastern Time on February 7, 2026 (corresponding to early morning IST), comes as part of implementing a recently announced interim trade agreement between the United States and India.
Key Details from the Executive Order and Joint Statement
- Tariff Removal: The extra 25% duty (imposed in 2025 under Executive Order related to threats from the Russian Federation) is fully rescinded. This penalty was applied on top of existing reciprocal tariffs due to India’s continued imports of Russian crude oil amid global sanctions following the Ukraine conflict.
- Reason for Reversal: Trump stated that India has committed to stop directly or indirectly importing Russian Federation oil. In exchange, India has agreed to purchase more US energy products and committed to a 10-year framework for expanded defense cooperation.
- Overall Tariff Adjustment: As per a US-India joint statement, the US will now apply a reciprocal tariff rate of 18% on various Indian goods (such as textiles, leather, organic chemicals, and others), down from previous higher levels (reports indicate effective rates were previously elevated to around 50% in some contexts due to the layered penalties). This makes the effective tariff on India lower than some competitors in certain sectors.
- Conditions and Safeguards: The order includes a provision that the 25% tariff could be reimposed if the US Secretary of Commerce determines that India resumes Russian oil imports. Refunds for any duties already collected will be processed per US Customs and Border Protection procedures.
- Broader Trade Context: This is the first major step in cementing an interim trade pact announced earlier this week after discussions between Trump and Indian Prime Minister Narendra Modi. India has agreed to reduce or eliminate tariffs on a range of US industrial goods, agricultural products (e.g., dried distillers’ grains, soybean oil, tree nuts, wine), and more. The deal aims to pave the way for a fuller Bilateral Trade Agreement (BTA) and strengthen supply chain resilience.
The decision follows months of trade tensions, during which the US used tariffs to pressure India to diversify away from Russian energy sources. India’s significant reliance on discounted Russian oil (often over a third of its imports) had been a point of friction, but recent commitments have led to this de-escalation.
This development is widely reported by major outlets including Bloomberg, Reuters, The Times of India, The Hindu, and official White House releases. No specific article matching the exact phrasing appears on www.nriglobe.com based on available searches, but the news aligns with global reporting on February 6-7, 2026.
For official text:
- White House Executive Order: Modifying Duties to Address Threats to the United States by the Government of the Russian Federation (February 6, 2026).
- US-India Joint Statement on the Interim Agreement.
This eases bilateral trade relations significantly and could benefit Indian exporters in key sectors while tying into larger geopolitical shifts in energy and defense ties.
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