US scraps 25% tariff on Indian imports after oil pledge and defence pact
The White House is lifting the duty from 7 February EST after India pledged to stop buying Russian oil, shift to US energy supplies and expand defence cooperation, with a warning the tariff could return if commitments lapse.
The United States will remove a 25% surcharge on goods from India, reversing a measure imposed in 2025 over New Delhi’s purchases of Russian oil.
In an executive order signed by President Donald Trump, the administration said India has committed to halt direct or indirect imports of Russian crude, buy US energy products, and enter a 10‑year framework to expand defence cooperation. On that basis, the White House said India had taken “significant steps” to address the national emergency first outlined in 2022 around Russia’s war in Ukraine.
The change takes effect at 12:01 a.m. Eastern on 7 February. US Customs and Border Protection will process refunds where the extra duty was collected. The order also terminates the related tariff listings in the US Harmonized Tariff Schedule (headings 9903.01.84 through 9903.01.89 and a related note).
Officials will monitor whether India resumes buying Russian oil. If that happens, the Commerce Secretary must report the finding and the State Department will recommend whether to reimpose the 25% duty on Indian goods, according to the order.
The tariff was introduced in August 2025 under Executive Order 14329, which targeted imports from countries deemed to be importing Russian oil despite US sanctions pressure. India emerged as a major buyer of discounted Russian crude after 2022, reshaping global oil flows, while insisting its purchases complied with its own energy security needs.
Beyond tariffs, the order delegates implementation to multiple agencies and allows further technical changes to the tariff schedule via notice in the Federal Register. It does not detail the volumes or timelines of India’s intended US energy purchases.
Why it matters: removing the surcharge lowers costs for US importers sourcing from India and signals a reset in Washington–New Delhi ties on energy and defence. It also tightens US pressure on flows of Russian oil. The monitoring clause means the policy could snap back quickly if India’s commitments change.
This article was originally written by AI. You can view the original source here.