Trump Removes 25% Tariff on Indian Imports as Part of Interim Trade Framework

By Mintesinot Nigussie
Published on 02/07/26

President Donald Trump has lifted the additional 25  per cent tariff on Indian goods imposed over New Delhi’s purchases of Russian oil, the first tangible step toward implementing a trade agreement announced earlier this week.

The White House said in an executive order that India had committed to stop direct or indirect imports of Russian crude, increase purchases of United States energy products, and expand defence cooperation under a ten-year framework.

The tariff removal, effective from February 7, 2026, follows months of trade tension over Indian oil imports from Russia, which Washington viewed as undermining sanctions on Moscow. Reuters noted that the punitive levy had been applied on top of existing duties, sharply raising effective tariffs on several Indian exports.

Under the interim trade framework, both countries have agreed to adjust tariffs on key sectors. The United States will reduce tariffs on most Indian goods to 18 per cent, while India has pledged to expand purchases of US energy and industrial products. The accord is intended as a precursor to a broader, formal trade pact.