Trump Lifts 25% Tariff on India After Oil, Security Pledges

Trump signed an executive order ending the additional duty that had been imposed in August 2025 under a national emergency related to Russia's actions in Ukraine.

"I have determined 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," Trump said in the order.

He said India has committed to stop directly or indirectly importing Russian oil. The order also said India has represented that it will buy US energy products and has agreed to a framework with Washington to expand defense cooperation over the next 10 years.

Based on those steps, Trump said he had decided to eliminate the extra 25 per cent duty on Indian goods. "In my judgment, this modification is necessary and appropriate to deal with the national emergency declared in Executive Order 14066," he said.

The tariff will be removed for Indian goods entered for consumption, or withdrawn from bonded warehouses, on or after 12:01 a.m. Eastern time on February 7, 2026.

The order terminates several special tariff headings in the US Harmonized Tariff Schedule. It also directs that refunds of duties already collected be processed under existing US Customs and Border Protection procedures.

The decision reverses a penalty imposed last year after the administration concluded that India was importing Russian oil, despite US efforts to curb Moscow's energy revenues following the invasion of Ukraine.

Trump authorized the Secretary of State, working with the Treasury, Commerce, Homeland Security, and the US Trade Representative, to carry out the order. The Department of Homeland Security may make technical changes to the tariff schedule through a notice in the Federal Register.

The administration kept the option to reimpose the tariff. The order directs the Commerce Department to monitor whether India resumes buying Russian oil. If that happens, senior officials are to recommend whether the 25 per cent duty should be reinstated.

Earlier this week, Trump addressed the issue on social media, saying the tariff had been imposed because of concerns over Russian oil purchases and signaling that it could be removed if India aligned more closely with US energy and security objectives. The White House decision formalizes that position through the executive order signed on Friday.

The order says it does not create any enforceable legal rights and will be implemented in line with existing law and available funding.

The move reflects Washington's broader strategy to pressure Russia while rewarding partners it views as aligning with US sanctions and long-term security goals following the war in Ukraine.

- IANS