Finance
US President Donald Trump dropped a 25% duty on Indian imports, citing India’s pledge to stop importing Russian energy and strengthen security and economic ties with the US.
Trump issued an executive order terminating the additional duty imposed in August 2025 as part of a national emergency in response to Russia’s actions in Ukraine.
“I have determined that India has taken significant steps to address the national emergency described in Executive Order 14066 and to align sufficiently with the United States on national security, foreign policy, and economic matters,” Trump said in the order.
He said India has committed to stop directly or indirectly importing Russian oil. The order also said India has represented that it will buy US energy products and has agreed to a framework with Washington to expand defense cooperation over the next 10 years.
Based on those steps, Trump said he had decided to eliminate the extra 25 per cent duty on Indian goods. “In my judgment, this modification is necessary and appropriate to deal with the national emergency declared in Executive Order 14066,” he said.
The levy will be eliminated for Indian commodities entered for consumption or withdrawn from bonded warehouses after 12:01 a.m. Eastern time on February 7, 2026.
The ruling eliminates many unique tariff headings from the US Harmonized Tariff Schedule. It also requires that refunds of previously collected duties be processed using existing US Customs and Border Protection procedures.
The decision reverses a penalty imposed last year when the administration determined that India was importing Russian oil, despite US efforts to reduce Moscow’s energy profits following the invasion of Ukraine.
Trump directed the Secretary of State, in collaboration with the Treasury, Commerce, Homeland Security, and the US Trade Representative, to carry out the order. The Department of Homeland Security may make technical adjustments to the tariff schedule by publishing a notice in the Federal Register.
The administration maintained the option to reimpose the levy. The directive requires the Commerce Department to monitor whether India resumes purchasing Russian oil. If that happens, senior officials must propose whether the 25% duty should be reintroduced.
Earlier this week, Trump addressed the subject on social media, stating that the levy was placed due to worries about Russian oil sales and indicating that it may be lifted if India aligned more closely with US energy and security interests. The executive order issued by the White House on Friday formalizes this position.
The directive states that it does not create any enforceable legal rights and would be implemented in accordance with existing legislation and funding.
The action underscores Washington’s broader approach of putting pressure on Russia while rewarding friends who support US sanctions and long-term security interests in the aftermath of the Ukrainian war.
Source: IANS
