US lifts 25% penalty tariff on India over Russian oil imports, warns it could be reimposed if...

US President Donald Trump has signed an executive order revoking the additional 25 per cent tariff imposed on all imports from India, the White House announced. The additional duty was originally imposed in August 2025, targeting India over its then-imports of Russian oil, citing concerns about Russia’s actions against Ukraine.

Why the tariff was lifted?

The White House stated that the decision to remove the tariff followed a review of new information and recommendations from senior US officials regarding India’s recent actions to address the national emergency described in Executive Order 14066.

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The executive order said that 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.

"After considering the information and recommendations these officials have provided to me, among other things, I have determined that India has taken significant steps to address the national emergency described in Executive Order 14066 and to align sufficiently with the United States 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," the executive order read.

Effective date and tariff termination

Effective 12:01 a.m. Eastern Standard Time on February 7, 2026, products of Indian origin imported into the US will no longer be subject to the additional 25 per cent ad valorem duty imposed under Executive Order 14329. Corresponding tariff provisions under the Harmonised Tariff Schedule of the United States, including headings 9903.01.84 through 9903.01.89 and subdivision (z) of U.S. Note 2 to subchapter III of chapter 99, are also terminated. The US Customs and Border Protection will process refunds of duties already collected, as applicable, the executive order stated.

Implementation and oversight

The executive order also empowers the Secretary of State, in coordination with other senior officials, to implement the decision, including issuing rules and regulations. The Secretary of Homeland Security, in consultation with the US International Trade Commission, may make technical modifications to the tariff schedule through notices in the Federal Register.

Can tariffs be reimposed?

The White House clarified that it will continue to monitor India’s compliance with the commitment to halt Russian oil imports. If India resumes direct or indirect imports, the US administration may consider reimposing the 25 per cent tariff.