Explained: Why the US is lifting additional 25$ duty on India over Russian oil, what New Delhi promised in return, and more

The United States has said India has committed to stopping the direct or indirect import of Russian oil, a move that has paved the way for the removal of an additional 25 per cent tariffs imposed on Indian goods by Washington. The rollback of duties will take effect from February 7, according to an executive order issued by the White House.

The order states that “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” for goods entered for consumption on or after 12.01 am eastern standard time on February 7, 2026. The tariffs were originally imposed in August last year, when the US slapped a 25 per cent reciprocal tariff along with an additional 25 per cent levy on Indian goods over New Delhi’s purchases of Russian crude oil.

What India has committed to

In the executive order issued on Friday local time, US President Donald Trump said he had “received additional information and recommendations from senior officials regarding India’s efforts to address the national emergency described in Executive Order 14066”.

“Specifically, India has committed to stop directly or indirectly importing Russian Federation oil, has represented that it will purchase United States energy products from the United States, and has recently committed to a framework with the United States to expand defence cooperation over the next 10 years,” he said.

The White House also said India and the US have agreed on a framework to expand defence cooperation over the next decade, signalling closer strategic and security ties.

Why were the tariffs imposed?

Trump noted that Russia’s actions continue to pose an “unusual and extraordinary” threat to US national security and foreign policy. To deal with that threat, he said he had determined in August last year that it was “necessary and appropriate” to impose an additional 25 per cent duty on Indian imports, as India was then directly or indirectly importing Russian oil.

Why are the tariffs being lifted now?

After reviewing updated assessments, Trump said India has taken “significant steps” to address the national emergency and align with the US on national security, foreign policy and economic matters.

“Accordingly, I have determined to eliminate the additional ad valorem rate of duty imposed on imports of articles of India pursuant to Executive Order 14329. In my judgment, this modification is necessary and appropriate to deal with the national emergency declared in Executive Order 14066,” he said.

Warning: Tariffs can return

The executive order makes clear that the relief is conditional. If India resumes directly or indirectly importing Russian oil, the US could reimpose the additional 25 per cent duty.

If the US Secretary of Commerce finds that India has resumed such imports, Trump’s team will recommend “whether and to what extent I should take additional action as to India, including whether I should reimpose the additional ad valorem rate of duty of 25 per cent on imports of articles of India,” the order said.

The order also authorises Secretary of State Marco Rubio to take necessary actions under the International Emergency Economic Powers Act (IEEPA) to implement the decision. US departments and agencies have been directed to monitor compliance, with the Commerce Secretary coordinating with the State and Treasury departments to track whether India resumes importing Russian oil.