Washington, February 7: President Donald Trump has lifted the 25% tariff on goods imported from India. This decision comes after India pledged to halt oil purchases from Russia and strengthen its security and economic ties with the United States.
Trump signed an executive order that eliminates the additional tariff imposed in August 2025, which was part of a national emergency related to the Russia-Ukraine war.
In the order, Trump stated that India has taken significant steps to align with the U.S. on national security, foreign policy, and economic matters. This alignment was a key factor in the decision to remove the tariff.
He noted that India has committed to not importing oil from Russia, either directly or indirectly. The order also mentions that India has agreed to purchase U.S. energy products and has reached a framework with Washington to enhance defense cooperation over the next decade.
Given these developments, Trump announced the removal of the 25% additional tariff on Indian goods. The order also eliminates certain categories from the U.S. tariff list. Refunds for previously collected tariffs will be processed according to existing customs procedures.
This decision reverses penalties imposed last year when the administration concluded that India continued to import Russian oil despite U.S. efforts to reduce Moscow’s energy revenue following its invasion of Ukraine.
The responsibility for implementing the order has been assigned to the Secretary of State, who will collaborate with the Departments of Treasury, Commerce, Homeland Security, and the U.S. Trade Representative. The Department of Homeland Security may also make technical adjustments to the tariff list if necessary.
However, the U.S. has kept the option open to reinstate the 25% tariff if India resumes oil purchases from Russia. The Commerce Department will monitor this situation, and senior officials will provide recommendations as needed.
Earlier this week, Trump mentioned on social media that the tariff was imposed due to concerns over oil purchases from Russia, and it could be lifted if India’s stance changed. The White House has now formalized this decision through an official order.