India-US trade deal: Trump signs executive order withdrawing 25% tariffs for buying Russian oil

United States has formally withdrawn the additional 25 per cent tariff imposed on Indian imports, following a decision by President Donald Trump to revoke the measure through an executive order, the White House confirmed. The move marks a significant shift in trade relations between Washington and New Delhi after months of economic pressure tied to India’s earlier purchases of Russian oil.

Background to the Tariff Decision

The extra duty was introduced in August 2025 amid US concerns over Russia’s military actions in Ukraine. At the time, the Trump administration cited India’s continued direct and indirect imports of Russian crude as a key reason for invoking the penalty. The tariff applied broadly across Indian goods entering the US market, adding strain to bilateral trade ties.

According to the White House, the tariff was imposed under a national emergency framework established by an earlier executive order addressing threats linked to Russia’s global actions.

India’s Commitments Prompt Review

The latest decision follows a review conducted by senior US officials, who assessed India’s recent policy steps and strategic commitments. The administration said India has agreed to halt all direct and indirect imports of Russian Federation oil, a move viewed as central to easing Washington’s concerns.

In addition, New Delhi has committed to expanding purchases of US energy products and has entered into a long-term framework to deepen defence cooperation with the United States over the next decade. These steps, US officials said, demonstrate closer alignment on security, foreign policy, and economic priorities.

White House Justifies Tariff Rollback

In the executive order, President Trump stated that India had taken 'significant steps' to address the national emergency cited in the earlier order. He added that removing the tariff was 'necessary and appropriate' given India’s actions and improved alignment with US strategic objectives.

As a result, the additional 25 per cent duty will be fully eliminated, and the relevant tariff provisions under the Harmonised Tariff Schedule of the United States will be terminated.

Refunds and Ongoing Monitoring

The White House said that, where applicable, refunds for duties already collected will be issued in line with US law and standard procedures of US Customs and Border Protection. The Secretary of State has been authorised to coordinate implementation, while the Department of Homeland Security and the US International Trade Commission may issue technical updates to the tariff schedule.

However, the administration stressed that India’s compliance will continue to be closely monitored. Any resumption of Russian oil imports could prompt the US to reconsider and potentially reimpose the additional tariff.