US lifts 25 tariff linked to Russian oil but with rider

US President Donald Trump has lifted the additional 25 per cent tariff imposed on Indian imports, citing New Delhi’s commitment to halt direct or indirect purchases of crude oil from Russia, albeit with a rider. The executive order makes it clear that the penal tariff can be reimposed if India violates commitments on Russian oil purchases.

The order provides for continued monitoring of India’s energy sourcing, tasking the US Secretary of Commerce, in coordination with other senior Cabinet officials, with tracking whether India resumes direct or indirect imports of Russian oil. In the event of any violation, the administration retains the option to recommend reimposition of the 25 per cent tariff on Indian goods.

The White House said the penal tariff, imposed in August 2025 under US emergency economic powers, was withdrawn after the President determined that India had taken “significant steps” to address the national emergency declared by the US in 2022 following Russia’s invasion of Ukraine.

“India has aligned sufficiently with the US on national security, foreign policy and economic matters,” the order said, adding that removal of the additional duty was “necessary and appropriate” to address the continuing national emergency.

The order specifically cited India’s commitments to cease Russian oil imports, substantially increase purchases of US energy products and expand defence cooperation with Washington over the next decade.

The 25 per cent ad valorem duty had been imposed under legislation that allows the US President to take trade action in response to threats to national security and foreign policy interests.

Responding to questions on energy sourcing, External Affairs Ministry spokesperson Randhir Jaiswal reiterated India’s long-standing position that energy security remained the government’s overriding priority. “Ensuring the energy security of 1.4 billion Indians is the supreme priority. Diversifying our energy sourcing in keeping with objective market conditions and evolving international dynamics is at the core of our strategy,” he said at a recent briefing.

The US administration’s decision comes alongside the announcement of a framework for an interim India-US trade agreement aimed at expanding market access and strengthening supply-chain cooperation. Under the joint statement issued by the two countries on Saturday, the US has agreed to remove the 18 per cent reciprocal tariff on a wide range of Indian goods once the interim agreement is successfully concluded.

Until the deal is finalised, however, reciprocal tariffs will continue to apply on Indian exports such as textiles and apparel, leather and footwear, plastic and rubber products, organic chemicals, home décor, artisanal products and select machinery. Subject to completion of the interim pact, tariffs are proposed to be eliminated on products including generic pharmaceuticals, gems and diamonds, and aircraft parts.

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Courtesy: The Tribune -08-Feb-2026