In August last year, the US imposed 25 per cent reciprocal tariffs on goods from India. Besides, India attracted an additional 25 per cent levy over its purchase of Russian crude oil.
The United States on Saturday announced that an additional 25 per cent tariff imposed by America on Indian goods for buying Russian oil has been removed following a trade deal between the two nations. This came after Washington said New Delhi has committed to stop directly or indirectly importing the oil from Russia.
According to a White House executive order, India has also committed to a 10-year framework to expand defence ties with the United States.
“Effective with respect to goods entered for consumption, or withdrawn from the warehouse for consumption, on or after 12.01 am eastern standard time on February 7, 2026, products of India imported into the United States shall no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 imposed pursuant to Executive Order 14329,” the order read.
In August last year, the US imposed 25 per cent reciprocal tariffs on goods from India. Besides, India attracted an additional 25 per cent levy over its purchase of Russian crude oil. However, after the trade agreement and India’s commitment to stop buying Russian oil, the reciprocal tariffs have been reduced to 18 per cent while the penalty tariff for buying energy from Moscow has been completely removed.
The US, however, warned that it would consider reimposing tariffs on India if it finds that New Delhi has resumed directly or indirectly importing Russian oil.
India, US finalise framework for trade deal
Meanwhile, India and the United States have finalised a framework for trade deal and a joint statement has been released by the two nations.
Both countries said the interim deal reflects a shared commitment to fair and balanced trade, improved market access and more resilient supply chains. The agreement is being positioned as a key step towards a comprehensive trade pact between the two partners.
Commerce and Industry Piyush Goyal said the trade deal will open a $30 trillion market for Indian exporters. Goyal added that the apprehensions of the agriculture and dairy sector have been addressed under the deal and these sectors remain fully protected.
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