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Trump lifts 25% tariff on India, says New Delhi 'committed to stop directly or indirectly importing Russian Federation oil'

Trump lifts 25% tariff on India, says New Delhi 'committed to stop directly or indirectly importing Russian Federation oil'

US President Donald Trump, Indian PM Narendra Modi Photograph: (ANI)

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The United States has lifted the additional 25 per cent tariff on Indian goods after President Donald Trump signed an executive order implementing a new trade understanding with India.

United States President Donald Trump on Friday (Feb 6) initiated the first concrete step toward implementing a newly announced trade understanding with India, lifting the 25 per cent tariff he imposed for New Delhi's purchase of Russian oil. Trump signed an executive order to remove the additional 25 per cent tariff on Indian goods. The move comes after months of trade friction between the two countries.

India to stop buying Russian oil?

According to the executive order signed Friday, "India has committed to stop directly or indirectly importing Russian Federation oil".

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It adds that New Delhi intends to significantly expand purchases of American products, "and has recently committed to a framework with the United States to expand defence cooperation over the next 10years."

When will the tariff relief be implemented?

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The tariff relief took effect at 12:01 am Eastern Time on Saturday (Feb 7), easing pressure on Indian exporters who had been facing elevated duties in the American market.

The move follows Trump’s announcement earlier this week of a broader trade deal with India, which aims to reset economic ties strained by disagreements over India’s continued purchases of Russian crude during the Ukraine war.

Beyond the immediate tariff rollback, the agreement will also see the United States reduce so-called reciprocal tariffs on Indian goods to 18 per cent from the earlier 25 per cent level, though the timeline for implementing that reduction has not yet been finalised.

A joint statement released by the White House said India intends to purchase $500 billion of US energy products, aircraft and parts, precious metals, tech products and coking coal over the next five years. The agreement also includes provisions to remove tariffs on certain aircraft and aviation parts.

The development marks a notable cooling of tensions after US tariffs on Indian goods climbed to as high as 50 per cent late last year. It also goes to restore ties between Trump and Indian Prime Minister Narendra Modi, whom the POTUS has described as "one of my greatest friends."

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Moohita Kaur Garg

Moohita Kaur Garg is a senior sub-editor at WION with over four years of experience covering the volatile intersections of geopolitics and global security. From reporting on global...Read More