The United States has revoked the additional 25 per cent tariff imposed on all imports from India over New Delhi’s purchases of Russian oil, following the signing of an executive order by US President Donald Trump on Friday, the White House said.
The decision comes days after India and the United States finalised a long-pending bilateral trade agreement, bringing an end to nearly a year of trade tensions between the two countries. A White House official confirmed that Washington has withdrawn the punitive duty that had been levied specifically in response to India’s imports of Russian crude oil.
Previously, Indian goods entering the US were subject to a cumulative tariff of 50 per cent — a 25 per cent “reciprocal” tariff and an additional 25 per cent penalty linked to India’s energy trade with Russia. Under the new arrangement, US tariffs on Indian goods have been reduced to 18 per cent.
In return, India has agreed to halt purchases of Russian oil and ease several trade barriers, marking a significant shift in its energy and trade policy. In the past, President Trump had repeatedly accused India of indirectly supporting Russia’s military actions in Ukraine by continuing to buy Russian crude, despite Western sanctions imposed after Moscow invaded Ukraine in 2022.
India has been one of the largest buyers of Russian oil, sourcing a substantial share of its crude through long-term arrangements. The availability of discounted Russian oil has helped India reduce its overall import costs amid global energy price volatility.
However, India has recently begun scaling back these purchases. According to a Reuters report, India’s crude oil imports from Russia stood at around 1.2 million barrels per day in January and are expected to decline to about 1 million barrels per day in February and approximately 800,000 barrels per day in March.
The rollback of tariffs is expected to provide relief to Indian exporters and give fresh momentum to India–US trade relations.