Highlights:
- US to remove extra 25 per cent duty on Indian goods effective Saturday (7)
- Decision follows India’s commitment to stop importing Russian oil
- India agrees to expand defence cooperation with the US for the next decade
- Tariffs may be reimposed if India resumes Russian oil imports
- US agencies to closely monitor India’s compliance
The United States has announced that it will withdraw the additional 25 per cent import duty imposed on Indian goods, effective Saturday (7), following commitments made by New Delhi on energy sourcing and defence cooperation. The decision was formalised through an executive order issued by the White House on Friday (6).
According to the order, products of India entering the United States for consumption, or withdrawn from bonded warehouses for consumption, on or after 12.01 am Eastern Standard Time on Saturday (7), will no longer attract the additional ad valorem duty of 25 per cent. This surcharge had been imposed under Executive Order 14329 in August last year.
The tariffs were originally introduced after Washington raised concerns over India’s direct or indirect purchase of crude oil from the Russian Federation, which the US considers a threat to its national security and foreign policy interests amid the ongoing conflict involving Russia. At the time, the US imposed both reciprocal tariffs and an additional levy on Indian imports.
In the latest executive order, President Donald Trump said he had received updated assessments and recommendations from senior US officials regarding India’s efforts to address the national emergency outlined in Executive Order 14066. He noted that India has now committed to stopping the direct or indirect import of Russian oil, purchasing energy products from the United States, and entering into a framework to expand defence cooperation with Washington over the next ten years.
Trump said these steps represented “significant progress” and reflected closer alignment between India and the US on national security, foreign policy and economic matters. Based on this assessment, he determined that eliminating the additional tariff was “necessary and appropriate” to address the national emergency declared earlier.
However, the executive order makes it clear that the relief is conditional. If the US Secretary of Commerce determines that India has resumed directly or indirectly importing Russian oil, the administration will review whether to reimpose the additional 25 per cent duty, either in full or in part. The order states that Trump’s team would recommend what further action should be taken in such a scenario.
The order also authorises Secretary of State Marco Rubio to take any actions required to implement the decision, including issuing rules or regulations and using presidential powers under the International Emergency Economic Powers Act. All executive departments and agencies have been directed to take appropriate measures within their authority to enforce and monitor compliance with the order.
Going forward, the Secretary of Commerce, in coordination with the Secretaries of State and the Treasury and other senior officials, will closely monitor India’s energy import practices. The White House reiterated that the tariffs could be swiftly reinstated if India is found to be importing Russian oil again, directly or through intermediaries.
The move marks a significant easing of trade tensions between the two countries, while underlining Washington’s continued use of trade policy as leverage to advance its strategic and foreign policy objectives.
