Trump Lifts 25% Tariff On Indian Imports After Policy Shift On Russia

US President Donald Trump has signed an executive order lifting the 25 per cent tariff on Indian imports, originally imposed in August 2025 under a national emergency linked to Russia’s actions in Ukraine.

Trump cited India’s commitment to halt both direct and indirect Russian oil purchases and to strengthen defence and economic cooperation with the United States over the next decade. He underlined that India had taken ‘significant steps’ to align with US national security and foreign policy objectives.

The tariff removal applies to Indian goods entered for consumption or withdrawn from bonded warehouses from 12:01 AM Eastern time on February 7, 2026.

The order also cancels certain tariff headings in the US Harmonised Tariff Schedule and instructs Customs authorities to process refunds of duties already collected.

The administration, however, retained the right to reimpose the duty should India resume Russian oil imports.

The executive order formalises Washington’s approach of rewarding nations that comply with US sanctions and support broader security goals following the Ukraine conflict.

Earlier in the week, Trump indicated on social media that he would remove the tariff if India aligned more closely with US energy and security objectives.

Analysts view the formal order as both a diplomatic and economic gesture, aimed at bolstering bilateral relations, expanding trade, and reinforcing strategic cooperation in energy and defence.

The move is expected to benefit Indian exporters, improve trade flows, and signal a deepening of the US–India partnership. It also reflects Washington’s broader strategy of applying pressure on Russia while incentivising allies and partners that support long-term US foreign policy and security priorities.

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