US President Donald Trump signed an executive order removing the additional 25% tariff that had been imposed on all imports from India in response to New Delhi’s purchases of Russian oil, the White House said.
“India has committed to stop directly or indirectly importing Russian Federation oil,” as per the executive order Trump signed.
The order added, “New Delhi has also said that it will purchase US energy products, and has recently committed to a framework with the United States to expand defence cooperation over the next 10 years.
The White House said that the decision comes after a review of additional information and recommendations from senior US officials concerning India’s recent measures to address the national emergency declared under an executive order.
The administration also stated that India has agreed to cease both direct and indirect imports of Russian oil, committed to buying US energy products, and established a framework with Washington to enhance defence cooperation over the next decade.
The additional 25% US tariff will be lifted at 12:01 am Eastern Time on Saturday.
The decision follows the recent conclusion of a long-awaited trade agreement between India and the United States, after almost a year of trade-related friction between the two nations.
Earlier this week, Trump announced a trade deal with India that reduced US tariffs on Indian products from 25% to 18%. In exchange, India agreed to stop buying Russian oil and ease several trade restrictions.
The implementation of this reduction has yet to take effect.
Other provisions of the agreement include the elimination of tariffs on selected aircraft and related components, according to a separate joint statement issued by the White House on Friday.
The statement also noted that India plans to purchase $500 billion worth of US energy products, aircraft and parts, precious metals, technology goods, and coking coal over the next five years.
This change represents a substantial cut in US tariffs on Indian goods, which stood at 50% late last year.
Previously, Trump had consistently accused India of aiding Moscow by continuing its purchases of Russian oil, arguing that this indirectly backed Russia’s military operations in Ukraine.
India has been a significant buyer of Russian crude, fulfilling nearly 90% of its oil import requirements through long-term supply agreements.
After Russia’s invasion of Ukraine in 2022 and the subsequent Western sanctions on its energy exports, India benefited from buying discounted Russian oil, which helped lower its overall import bill.
However, India has recently begun scaling back these purchases. A Reuters report said imports from Russia were about 1.2 million barrels per day in January and are projected to decline to roughly 1 million barrels per day in February and around 800,000 barrels per day in March.
