The United States on Saturday announced it will remove the additional 25% tariffs earlier imposed on Indian goods over New Delhi’s purchase of Russian oil, marking a significant step toward easing trade tensions between the two countries.
According to a White House executive order, the removal of the extra duties will take effect from 12:01 am Eastern Standard Time on February 7, 2026. From then on, Indian products entering the US will no longer face the additional tariff introduced under an earlier order. The move is expected to bring major relief to Indian exporters, whose shipments had faced combined tariffs of up to 50% since last summer.
President Donald Trump said the decision followed assurances from India that it would halt purchases of Russian crude and increase its dependence on US energy supplies. He also cited India’s agreement to a framework aimed at expanding defence cooperation with Washington over the next decade.
The rollback comes as part of a broader trade understanding reached earlier this week after a phone call between Trump and Prime Minister Narendra Modi. In a joint statement, India said it plans to import around $500 billion worth of goods from the US over the next five years.
These imports are expected to include energy products, aircraft and aircraft components, precious metals, technology products and coking coal. Both sides also agreed to significantly expand trade in advanced technology items, including graphics processing units and equipment used in data centres.
However, the tariff relief is conditional. The executive order states that if India resumes importing Russian oil, Washington could consider reimposing the additional duties.
As part of the arrangement, the US will remove tariffs on certain aircraft and aircraft parts, while India has agreed to address non-tariff barriers affecting American agricultural and food products. India will also receive preferential tariff-rate quotas for automobile components and generic pharmaceuticals.
US Trade Representative Jamieson Greer said more work would be needed from New Delhi to fully eliminate trade barriers but described the agreement as a step toward deeper economic ties.
Commerce and Industry Minister Piyush Goyal said the interim trade framework would open a $30-trillion US market for Indian exporters, with particular benefits for MSMEs, farmers and fishermen. He added that the expected export push would create large-scale employment opportunities, especially for women and youth.
Goyal also said reciprocal tariffs on Indian goods would be reduced to 18%, while duties on products such as generic pharmaceuticals, gems and diamonds, and aircraft parts would drop to zero. Sensitive farm and dairy products, however, will remain protected to safeguard farmers’ interests and rural livelihoods.