US Removes Additional 25% Tariffs on Indian Goods

The United States has announced the removal of the additional 25 per cent tariffs imposed on Indian goods, effective February 7, 2026. The decision follows India’s commitment to halt direct or indirect imports of Russian oil and marks a significant development in bilateral trade relations between United States and India.

Background to the Tariff Decision

The additional tariffs were imposed by the US in August last year as part of reciprocal trade measures, alongside penalties linked to India’s continued purchase of Russian crude oil. These duties significantly impacted Indian exporters across multiple sectors. The latest move reflects a recalibration of US trade policy following India’s assurance on energy sourcing.

Executive Order and Implementation Timeline

An executive order issued by the White House specifies that Indian products entered for consumption, or withdrawn from bonded warehouses, on or after 12.01 am Eastern Standard Time on February 7, 2026, will no longer attract the additional 25 per cent ad valorem duty. The rollback restores tariff conditions prevailing prior to the August measures.

Energy Commitments and Strategic Assurances

India has committed to stopping the direct or indirect import of Russian oil. The US administration has stated that compliance will be closely monitored. If India is found to have resumed such imports, the US Secretary of Commerce will review the situation and may recommend reimposition of the additional tariffs.

Important Facts for Exams

• Ad valorem duty is a tax based on the value of imported goods.
• Executive orders in the US have the force of law for federal agencies.
• Energy trade commitments are increasingly linked to strategic diplomacy.
• Tariff measures are key tools in international economic negotiations.

Defence Cooperation Framework

Alongside the tariff rollback, India and the US have agreed on a framework to expand defence cooperation over the next decade. This long-term arrangement signals deeper strategic alignment, covering defence procurement, technology sharing, and joint initiatives, reinforcing the broader partnership beyond trade and energy issues.