Trump Orders Rollback Of 25% Tariff On India Over Russian Oil Imports After Trade Deal

Last Updated:February 07, 2026, 08:28 IST

Trump has ordered to remove additional 25 per cent tariff on Indian goods. As part of trade deal, India will buy 500 billion dollars in US goods over five years.

US President Donald Trump on Friday announced the removal of an additional 25 per cent tariff on Indian goods that had been imposed in August last year in response to India’s purchases of Russian oil. This comes following the announcement of a trade deal between New Delhi and Washington earlier this week.

In an executive order, Trump said he had reviewed fresh assessments from senior officials on India’s actions linked to the national emergency outlined in Executive Order 14066. He noted that India has pledged to end direct and indirect imports of Russian oil and committed to buying US energy products, and agreed to a framework with Washington to expand defence cooperation over the next decade.

“I have received additional information and recommendations from senior officials regarding India’s efforts to address the national emergency described in Executive Order 14066. Specifically, India has committed to stop directly or indirectly importing Russian Federation oil, has represented that it will purchase 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," Trump said in an executive order, news agency PTI reported.

Based on these developments, the US President said he concluded that “India has taken significant steps to address the national emergency described in Executive Order 14066 and to align sufficiently with the United States on national security, foreign policy, and economic matters. Accordingly, I have determined to eliminate the additional ad valorem rate of duty imposed on imports of articles of India."

The additional 25 per cent duty will be removed at 12:01 a.m. Eastern Time on Saturday. The decision follows Trump’s recent announcement of a broader trade understanding with India, after he said Prime Minister Narendra Modi agreed to halt Russian oil purchases linked to the war in Ukraine.

According to a joint statement issued by both sides, the deal also includes eliminating tariffs on certain aircraft and aviation components. The statement added that India plans to buy $500 billion worth of US goods over the next five years, including energy products, aircraft and parts, precious metals, technology items, and coking coal.

Overall, the agreement represents a sharp scaling back of US tariffs on Indian exports, which had climbed to about 50 per cent late last year. It also helps resolve months of friction over India’s oil trade with Russia, which US officials say has helped bankroll a conflict they are seeking to end.

The move signals renewed warmth in relations between Trump and PM Modi, whom the US president has previously called “one of my greatest friends." Trade analysts note that the new 18 per cent tariff rate gives Indian exporters a modest competitive advantage in the US market compared with regional rivals facing duties closer to 19 or 20 percent, according to Wendy Cutler of the Asia Society Policy Institute.

News world Trump Orders Rollback Of 25% Tariff On India Over Russian Oil Imports After Trade Deal

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