U.S. to Lift Additional 25% Tariff on Indian Goods After Oil Commitment, Announces White House

In a major trade shift, the U.S. has lifted the extra 25% duty on Indian imports after India pledged to stop buying Russian crude. The decision follows assurances of greater U.S. energy purchases and a 10-year defence cooperation framework. Officials said tariffs may be reimposed if the commitment is reversed.
U.S. to Lift Additional 25% Tariff on Indian Goods After Oil Commitment, Announces White House

The US has declared the 25 percent tariff on Indian imports will be eliminated after New Delhi has given it assurances that it will not buy Russian oil directly or indirectly and will strengthen long term defence ties with Washington.

The tariff relief will be effective as of 12.01 a.m. EST on February 7, 2026, according to an executive order of the White House. This action overturns the punitive duty which had been imposed on Indian products in August 2025 when the U.S. government related the ongoing imports of Russian crude by India with the issues that were being raised by the national emergency proclaimed after the Ukraine war.

According to the order, Indian products entering the United States to be consumed on or after the effective date shall no longer be subject to the supplemental ad valorem duty of 25 percent that had been levied previously under the Executive Order 14329.

In the directive, President Donald Trump claimed that he had new reviews of senior officials on the attempts of India to address American apprehensions. He said that India now intends to cease all direct or indirect importation of the Russian Federation oil, has expressed that it will purchase more U.S. energy products, and has accepted a framework to do more to strengthen defence between the two nations in coming 10 years.

The white house termed these measures as important in integrating India into the U.S. national security, foreign policy, and economic priorities.

The President has announced, having gone through the recent information and advice, that India has already done a lot to combat the national crisis and that elimination of the tariff is vital and essential in the given conditions.

The relief is however, with a warning. The executive order helps in close observation of the energy trade patterns of India. Should the Secretary of Commerce conclude that India is again purchasing Russian oil, the administration will advise the replacement of the 25 percent duty, either entirely or in some proportions.

The document also highlights that Russia has remained a threat that is unusual and peculiar to the U.S. national security and foreign policy. It was the same estimation which had previously justified the increase of the tariff against Indian exports.

In order to promote compliance, the order gives the Secretary of State, Marco Rubio, the authority to undertake the required steps, among which are framing rules and regulations. The U.S government departments and agencies have been instructed to exercise powers that can be exercised under the International Emergency Economic Powers Act to execute the decision.

The Commerce Department in collaboration with the State and Treasury departments will monitor whether or not direct and indirect Russian oil flows restart.

The ruling is a significant event in the U.S. trade relations with India. The elimination of the new tariff will likely help relieve cost strains on a variety of Indian exporters, both engineering products and textiles and pharmaceuticals and automotive parts, and lays the foundation of fresh strategic convergence between the two nations.

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Simultaneously, the conditional character of the rollback indicates that Washington is planning to retain leverage, and there is a possibility of imposing duties once more in case of non-compliance with promises.

It follows broader discussions of an interim trade structure and an ever-expanding range of defence and energy relationships, both of which both governments believe will be core to the next stage of their relationship.