Kamal Ghorui
US President Donald Trump has lifted the additional 25 per cent tariff imposed on Indian imports over New Delhi’s purchases of Russian oil. The move forms part of a wider interim trade framework announced by the two countries, aimed at resetting ties after months of strain. At the heart of it lies a sensitive question — what happens if India refuses to fully align with Washington’s demand to stop importing Russian oil?Under an executive order signed by Trump, the extra 25 per cent ad valorem duty imposed under Executive Order 14329 will be terminated from 12.01am EST on February 7, 2026. The White House said India had taken “significant steps” to address US concerns and had committed to stop directly or indirectly importing oil from the Russian Federation.
“Effective… on or after 12.01 am eastern standard time on February 7, 2026, products of India imported into the United States shall no longer be subject to the additional ad valorem rate of duty of 25 per cent,” the order said.As per the joint statement, the US secretary of commerce will monitor whether India resumes importing Russian oil. If it does, senior officials are required to recommend whether the President should reimpose the 25 per cent tariff. In effect, the suspension operates as leverage — a trade incentive tied directly to India’s energy choices.The tariffs had hit Indian exporters hard. Last August, Washington imposed 25 per cent reciprocal tariffs and an additional 25 per cent levy over Russian oil purchases, taking the total duty to 50 per cent on certain goods. The US is India’s largest export destination, and sectors such as textiles, leather, chemicals and machinery were affected.Now, under the interim framework, US tariffs on Indian goods will fall to 18 per cent from 50 per cent. Subject to the finalisation of the agreement, duties could eventually drop to zero on products including generic pharmaceuticals, gems and diamonds, and aircraft parts.In return, India will eliminate or reduce tariffs on US industrial goods and a range of agricultural products, including dried distillers’ grains, soybean oil, tree nuts, fruit, wine and spirits. New Delhi has also expressed its intention to purchase USD 500 billion worth of US energy products, aircraft, technology goods and coking coal over five years.The joint statement described the arrangement as a step towards a broader Bilateral Trade Agreement. It also included commitments to address non-tariff barriers and expand defence and technology cooperation.
