US Lifts 25% Tariff on India After Oil Deal, Boosts Defence Ties

The United States has terminated a 25% penalty tariff imposed on all imports from India. The decision follows India's commitment to halt imports of Russian oil and to purchase US energy products. Both nations have also entered into a new 10-year framework to expand defence cooperation. The White House stated it will monitor compliance and could reimpose the tariff if India resumes buying Russian oil.

Key Points: US Revokes India Tariff Over Russian Oil, Signs Defence Pact

  • US revokes 25% tariff on India
  • India stops importing Russian oil
  • New 10-year defence framework with US
  • Tariff refunds to be processed
  • US will monitor compliance
2 min read

US lifts 25% penalty tariff on India over Russian oil imports

US President Donald Trump lifts 25% penalty tariff on Indian imports after India halts Russian oil purchases and agrees to a 10-year defence framework.

US lifts 25% penalty tariff on India over Russian oil imports
"India has taken significant steps to address the national emergency - Executive Order"

Washington DC, February 7

US President Donald Trump has signed an executive order revoking the additional 25 per cent tariff imposed on all imports from India over New Delhi's purchases of Russian oil, the White House said.

United States announced the termination of the additional tariff imposed in August 2025 on Indian imports, citing concerns about Russia's actions against Ukraine and India's then-imports of Russian oil.

According to the White House, the decision follows a review of additional information and recommendations from senior US officials regarding India's recent actions to address the national emergency declared under an executive order.

The administration said India has committed to stop directly or indirectly importing Russian Federation oil, pledged to purchase US energy products, and entered into a framework with Washington to expand defence cooperation over the next 10 years.

"After considering the information and recommendations these officials have provided to me, among other things, 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," the executive order said, adding that the tariff modification was "necessary and appropriate" to deal with the ongoing national emergency.

As a result, the additional 25 per cent duty imposed under a particular executive order will be eliminated, and related tariff provisions under the Harmonised Tariff Schedule of the United States will be terminated. The White House said that, where applicable, refunds of duties already collected will be processed in accordance with US law and standard procedures of US Customs and Border Protection.

The order authorises the Secretary of State, in coordination with other senior officials and departments, to take necessary steps to implement the decision, including issuing rules and regulations. The Secretary of Homeland Security, in consultation with the US International Trade Commission, may also make technical modifications to the tariff schedule by notice in the Federal Register.

The White House said the US will continue to monitor India's compliance, particularly with respect to the import of Russian oil. If India resumes direct or indirect imports of Russian Federation oil, the administration may consider reimposing the additional tariff.

US had earlier imposed an additional 25% tariff on goods from India, saying the country directly or indirectly imported Russian oil.

- ANI

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Reader Comments

R
Rohit P
Good news for our exporters! The 25% tariff was hurting small and medium businesses. Hope this brings some stability. But the "monitoring" clause feels a bit like we're on probation. Our foreign policy should be independent.
A
Aman W
We had to buy affordable oil for our people. The US understands realpolitik now. The defence framework for 10 years is the bigger story here – that's a long-term commitment.
S
Sarah B
While I'm glad for the economic relief, I respectfully question if committing to stop *all* Russian oil imports is practical or in our best long-term interest. We need multiple suppliers to avoid price shocks. Energy diplomacy is complex.
V
Vikram M
Finally some pragmatism. The world isn't black and white. India will always act in its national interest first, just like any other country. This deal shows mutual respect is possible.
K
Kavya N
Hope the promised US energy products are competitively priced! Our refineries and consumers need good deals, not just political agreements. Let's see the fine print on these purchases.

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