'Committed To Stop...': US President Trump Lifts 25% Tariff On India Over Russian Oil Imports After Trade Deal

New Delhi: US President Donald Trump On Friday officially moved to remove the 25% punitive tariff previously levied on Indian imports.

This surcharge was originally a penalty for India's continued purchase of Russian oil, and its removal serves as a key component in activating the broader trade agreement reached between the two nations earlier this week.

What WH Statement said

The White House statement mentioned, "India has committed to stop directly or indirectly importing Russian Federation oil, has represented that it will purchase United States energy products from the United States, and has recently committed to a framework with the United States to expand defense cooperation over the next 10 years." 

"Effective with respect to goods entered for consumption, or withdrawn from the warehouse for consumption, on or after 12:01 a.m. eastern standard time on February 7, 2026, products of India imported into the United States shall no longer be subject to the additional ad valorem rate of duty of 25 percent imposed pursuant to Executive Order 14329. Accordingly, effective 12:01 a.m. eastern standard time on February 7, 2026, headings 9903.01.84 through 9903.01.89 and subdivision (z) of U.S. Note 2 to subchapter III of chapter 99 of the Harmonized Tariff Schedule of the United States are hereby terminated. To the extent that implementation of this order requires a refund of duties collected, refunds shall be processed pursuant to applicable law and the standard procedures of U.S. Customs and Border Protection for such refunds," it further underlined.

This executive order followed a recent announcement from President Trump regarding a trade agreement to lower duties on Indian imports. According to the President, the deal was struck after Prime Minister Narendra Modi pledged to terminate India's procurement of Russian oil in response to the ongoing conflict in Ukraine.

What lies in the new agreement of Interim Trade Deal

Meanwhile, as part of the framework of its trade deal with the US, India will eliminate or reduce tariffs on all US industrial goods and a wide range of US food and agricultural products, including dried distillers' grains, red sorghum for animal feed, tree nuts, fresh and processed fruits, soybean oil, wine and spirits, among others.

According to the Joint Statement, the United States will, in turn, apply a reciprocal tariff of 18 per cent on Indian-origin goods under the relevant executive order, covering sectors such as textiles and apparel, leather and footwear, plastics and rubber, organic chemicals, home decor, artisanal products, and certain machinery. 

"Subject to the successful conclusion of the Interim Agreement, the US will remove reciprocal tariffs on a wide range of goods, including generic pharmaceuticals, gems and diamonds, and aircraft parts."

The framework also provides for the removal of US tariffs on certain Indian aircraft and aircraft parts imposed under national security-related proclamations on aluminium, steel and copper. India will receive a preferential tariff rate quota for automotive parts, consistent with US national security requirements. 

Depending on the outcome of a US Section 232 investigation, India is also set to receive negotiated outcomes for generic pharmaceuticals and pharmaceutical ingredients, the statement mentioned.

Both countries committed to providing each other with preferential market access in sectors of mutual interest on a sustained basis and to establishing rules of origin to ensure that the benefits of the agreement accrue primarily to the United States and India, it added. 

Both sides said they would promptly implement the framework and work toward finalising the Interim Agreement, with a view to concluding a comprehensive and mutually beneficial Bilateral Trade Agreement in line with the agreed roadmap. 

What Kremlin had to say

Earlier, in its statement the Kremlin had said that India is free to procure Oil from wherever it wants. 

Kremlin Spokesperson Dmitry Peskov said, “We, along with all other international energy experts, are well aware that Russia is not the only supplier of oil and petroleum products to India. India has always purchased these products from other countries. Therefore, we see nothing new here.”