US removes 25% tariffs imposed on India for Russian oil purchases

In a significant thaw in trade relations, US President Donald Trump has lifted the 25 per cent tariff imposed on Indian goods over New Delhi’s purchases of Russian oil, citing what he described as “significant steps” by India to realign with American energy and security priorities.

The decision, formalised through an executive order signed on Friday, marks a reversal of a punitive measure imposed last year after Washington concluded that India continued importing Russian oil despite US-led efforts to choke Moscow’s energy revenues following its invasion of Ukraine.

Announcing the move, Trump said he had received fresh assessments from senior officials outlining India’s recent commitments. These include a pledge to cease, directly or indirectly, the import of oil from the Russian Federation, assurances that it will turn to the United States for energy supplies, and an agreement to a framework that would expand India–US defence cooperation over the next decade.

“After considering the information and recommendations provided to me, 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. “Accordingly, I have determined to eliminate the additional ad valorem rate of duty imposed on imports of articles of India.”

The removal of the tariff will apply to Indian goods entered for consumption, or withdrawn from bonded warehouses, on or after 12:01 a.m. Eastern Time on 7 February 2026. The order also terminates several special tariff headings under the US Harmonised Tariff Schedule and directs that refunds of duties already collected be processed in accordance with existing US Customs and Border Protection procedures.

While lifting the penalty, the administration has kept the door open for its return. The Commerce Department has been instructed to monitor India’s energy imports closely, with senior officials required to recommend reinstatement of the 25 per cent duty if New Delhi resumes buying Russian oil.

Trump had hinted at the shift earlier in the week through a social media post, suggesting that the tariff — imposed over concerns about Russian oil purchases — could be rolled back if India aligned more closely with US energy and security objectives. Friday’s executive order converts that signal into policy.

The Secretary of State has been tasked with implementing the decision in coordination with the Treasury, Commerce, Homeland Security, and the US Trade Representative, while the Department of Homeland Security may issue technical amendments to the tariff schedule through a Federal Register notice.

The order also underscores its limited legal scope, stating that it creates no enforceable rights and will be carried out subject to existing law and available appropriations.

More broadly, the move reflects Washington’s evolving strategy in the shadow of the Ukraine war: tightening pressure on Russia while extending economic relief to partners it believes are falling into step with US sanctions and long-term security goals.

With PTI/IANS inputs