US Removes Additional 25 Percent Tariffs on Indian Goods From February 7

Tariff Rollback Linked to India’s Oil Import Commitment​

The United States has announced the removal of the additional 25 percent tariffs imposed on Indian goods after India committed to stop directly or indirectly importing Russian oil. The decision takes effect from February 7, marking a significant shift in trade relations between the two countries.

According to an executive order issued by the White House, Indian products entering the United States on or after 12.01 am Eastern Standard Time on February 7, 2026, will no longer be subject to the additional ad valorem duty that had been imposed earlier.

Background to the Tariff Decision​

In August last year, the US had imposed reciprocal tariffs of 25 percent along with an additional 25 percent levy on Indian goods, citing India’s purchase of Russian crude oil. The latest order confirms that this additional levy has now been eliminated following India’s recent commitments.

US President Donald Trump stated that he had received updated information and recommendations from senior officials regarding India’s actions to address the national emergency referenced in an earlier executive order.

Defence Cooperation Framework Approved​

The executive order also noted that India has committed to a framework with the United States to expand defence cooperation over the next 10 years. This framework forms part of broader efforts to align more closely on national security, foreign policy, and economic matters.

Trump said India has represented that it will purchase energy products from the United States and has taken significant steps to address concerns outlined in previous orders.

Provision for Reimposition of Tariffs​

The order clearly states that the additional tariffs could be reimposed if India resumes directly or indirectly importing Russian oil. If the US Secretary of Commerce determines that such imports have restarted, recommendations will be made on whether and to what extent further action should be taken, including reinstating the 25 percent additional duty on Indian imports.

Trump noted that Russia’s actions continue to pose an unusual and extraordinary threat to US national security and foreign policy, which had earlier led to the imposition of the additional tariffs on India.

Monitoring and Enforcement Mechanism​

The executive order authorises the Secretary of State to take necessary actions, including issuing rules and regulations, and to exercise powers granted under the International Emergency Economic Powers Act to implement the decision.

All executive departments and agencies have been directed to take appropriate measures within their authority to carry out the order. The Secretary of Commerce, in coordination with the Secretary of State, the Secretary of the Treasury, and other senior officials, will monitor whether India resumes importing Russian oil.

The move signals a recalibration in trade ties between India and the United States, with the tariff rollback linked closely to energy sourcing commitments and broader strategic cooperation.