US Removes Extra 25% Tariff on Indian Goods Linked to Russian Oil Purchase

The United States has removed the additional 25% tariff that had been imposed on certain Indian goods linked to Russia oil purchases. The change came through an executive order and took effect from February 7, 2026. 

With the withdrawal of the extra levy, Indian products shipped to the US will no longer face the added duty introduced last summer. In some cases, the earlier measure had pushed total tariffs on affected goods to nearly 50%. 

Linked to Oil Import Decision 

This follows India’s assurance that it would stop direct or indirect purchases of Russian crude. The executive order states that the tariff relief is tied to this commitment. 

US authorities retain the option to restore the additional duty if it is found that India has resumed importing Russian oil at a later stage. 

Part of a Trade Arrangement 

The tariff rollback forms part of a broader interim trade framework between the two countries. The understanding was announced after a phone call between US President Donald Trump and Prime Minister Narendra Modi earlier in the week. 

Under the arrangement, India plans to buy about $500 billion worth of American goods over the next five years. The list includes energy supplies, aircraft and parts, technology products, precious metals and coking coal. 

Changes to Tariff Levels 

As part of the same framework, the US is expected to reduce reciprocal tariffs on Indian goods to around 18%. Previously, duty levels had pushed the effective rate on some items close to 50%. 

Certain categories, including generic pharmaceuticals, gems, diamonds and aircraft parts, are expected to see duties fall to zero. India will also receive tariff quotas for automobile parts and generic medicines. 

Other Elements of the Deal 

The US will remove tariffs on selected aircraft and aircraft parts. In return, India has agreed to address non-tariff barriers affecting American agricultural and food products.  

As per news reports, officials from both sides indicated that further steps would be needed to deal with remaining trade issues. 

Read More: US and India Forge Landmark Interim Trade Agreement: Check Key Highlights! 

Conclusion 

The removal of the additional tariff ends a short phase of higher duties on Indian exports. The relief, however, remains conditional on India’s adherence to its stated energy commitments. 

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