US lifts 25pc tariff on Indian goods linked to Russia oil purchases
'Reciprocal' levies on India cut to 18pc from a 25pc
Sunday, 8 February 2026
WASHINGTON, United States, Feb 7 (AFP): US President Donald Trump moved Friday to lift an additional 25 per cent tariff he imposed on goods from India over its purchases of Russian oil -- a step to implement a trade deal announced this week.
"India has committed to stop directly or indirectly importing Russian Federation oil," according to an executive order Trump signed. New Delhi has also said that it will purchase US energy products, "and has recently committed to a framework with the United States to expand defence cooperation over the next 10 years," the order said.
The additional 25 per cent US duty was set to go at 12:01 am Eastern Time on Saturday.
The executive order comes days after Trump announced a trade deal to reduce tariffs on India, saying that Prime Minister Narendra Modi had promised to stop buying Russian oil over the war in Ukraine. The pact would also see Washington cutting so-called "reciprocal" levies on Indian products to 18 per cent, down from a 25-per cent level.
The rollout of this reduction is still to come.
Other terms of the agreement include the removal of tariffs on certain aircraft and parts, according to a separate joint statement released Friday by the White House.
The statement added that India intends to purchase $500 billion of US energy products, aircraft and parts, precious metals, tech products and coking coal over the next five years.
The shift marks a significant reduction in US tariffs on Indian products, down from a rate of 50 per cent late last year.
The deal eases months of tensions over India's oil purchases, which Washington says fund a conflict it is trying to end.
It restores close ties between Trump and Modi, a fellow right-wing populist that the US leader has described as "one of my greatest friends."
The 18 per cent tariff level also gives Indian exporters a slight edge in the US market over competitors in the region who secured duties of around 19 per cent to 20 per cent, said Wendy Cutler, senior vice president at the Asia Society Policy Institute, this week.