
US withdraws 25 per cent tariff on Indian imports
The United States has removed an additional 25 per cent tariff on Indian imports after concluding that New Delhi has taken steps aligned with Washington’s security and economic priorities.
President Donald Trump signed an executive order ending the punitive duty that had been imposed in August 2025 under a national emergency declaration linked to Russia’s war in Ukraine.
In the order, Trump said India had made “significant steps” to address US concerns and had moved closer to American positions on national security, foreign policy and economic cooperation. He cited India’s assurances that it would stop directly or indirectly importing Russian oil and that it would increase purchases of US energy products.
The order also referred to a new US–India framework to expand defence cooperation over the next decade, describing this as a key factor behind the decision to lift the tariff.
As a result, the 25 per cent duty will no longer apply to Indian goods entered into the US for consumption, or withdrawn from bonded warehouses, from 12:01 a.m. Eastern Time on February 7, 2026.
The executive order terminates several special tariff lines in the US Harmonized Tariff Schedule and instructs US Customs and Border Protection to process refunds for duties already collected under existing procedures.
The move reverses a penalty imposed last year after Washington alleged that India was continuing to buy discounted Russian oil despite US efforts to squeeze Moscow’s energy revenues following its invasion of Ukraine.
Trump has authorised multiple US departments — including State, Treasury, Commerce, Homeland Security and the US Trade Representative — to implement the decision. The Department of Homeland Security may also make technical adjustments to the tariff schedule through a notice in the Federal Register.
However, the administration has kept open the option to reimpose the duty. The Commerce Department has been instructed to monitor India’s oil purchases, and senior officials must recommend a response if Russian imports resume.
The White House described the decision as part of a broader strategy to pressure Russia while rewarding partners that align with US sanctions policy and long-term security goals.