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US Formally Lifts Russia-Linked 25% Tariff on Indian Imports, Confirms 18% Reciprocal Rate

Summary

  • The US has officially lifted the additional 25% punitive tariff on Indian imports imposed in 2025 over India’s purchases of Russian oil, effective 7 February 2026, with refunds to be processed by US Customs. [yahoo.com]
  • President Trump determined that India has taken “significant steps” to halt direct and indirect Russian oil imports, expand defense cooperation with the US, and increase US energy purchases—conditions that triggered the rollback. [zeebiz.com]
  • Indian goods will now face only the 18% reciprocal tariff rate, as the US and India advance a framework for an interim trade agreement and broader bilateral trade deal. [tribuneindia.com]

 


Detailed Article

The United States has formally withdrawn the 25% ad valorem tariff levied on Indian imports in 2025 over India’s procurement of Russian oil, confirming that all Indian-origin goods will revert to the 18% reciprocal tariff rate. This shift follows the signing of an Executive Order on 6 February 2026 by President Donald Trump.

According to reporting from Yahoo News (link), the February 6 Executive Order eliminates the duties imposed under Executive Order 14329 in August 2025. The rollback takes effect at 12:01 a.m. EST on 7 February 2026, and US Customs and Border Protection is instructed to issue refunds for duties previously collected.

The White House decision was driven by new commitments from India, including:

  • Ending direct and indirect imports of Russian crude;
  • Increasing purchases of American energy products; and
  • Entering a long-term defense cooperation framework.
    These steps were detailed in coverage by Zee Business (link) and further corroborated by The Tribune (link).

Before the rollback, stacked tariff rates had pushed total duties on some Indian products as high as 50%, as described by The Economic Times (link). Under the updated regime, only the 18% reciprocal tariff applies, consistent with the US approach to tariff parity among trading partners.

On the same day, President Trump and Prime Minister Narendra Modi issued a joint statement outlining a framework for an interim trade agreement and wider bilateral negotiations. Details published in Tribune India (link) show that the United States will maintain the 18% reciprocal rate, with the possibility of tariff removals for aligned sectors as negotiations advance.

US authorities will maintain an active monitoring mechanism. Both Deccan Herald (link) and Outlook Business (link) report that the Executive Order authorizes the reimposition of the 25% duty should India resume any level of Russian oil imports. This safeguard clause empowers the State, Treasury, Commerce, and Homeland Security Departments to recommend immediate action if non-compliance is detected.

The tariff removal forms part of a broader strategic and economic realignment. As noted by Business Standard (link), India plans to purchase up to $500 billion in US goods over the next five years—including energy, aircraft, technology, and metals—under the emerging trade framework.

Overall, the move marks a major de-escalation in US–India trade tensions and reinforces a trajectory toward deeper economic integration, enhanced supply-chain cooperation, and a more comprehensive bilateral trade agreement in the coming months.

 



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