US President Donald Trump has signed an executive order fully eliminating the additional 25% tariff imposed on Indian imports due to India’s purchases of Russian oil. This penalty, introduced in August 2025, was layered on top of existing reciprocal tariffs to pressure New Delhi amid global sanctions related to the Russia-Ukraine conflict.

The order takes effect at 12:01 a.m. Eastern Time on February 7, 2026 (approximately 10:31 a.m. IST), marking a major step in implementing the interim trade agreement between the US and India.

Key Details from the Executive Order and US-India Joint Statement

• Tariff Removal: The extra 25% duty (imposed under Executive Order related to threats from the Russian Federation) is completely rescinded. This eases the burden on Indian exporters significantly.
• India’s Commitments: Trump stated that India has committed to stop directly or indirectly importing Russian Federation oil. In return, India will increase purchases of US energy products and has agreed to a 10-year framework for expanded defense cooperation.
• Overall Tariff Adjustment: Under the interim trade deal, the US will apply a reciprocal tariff rate of 18% on various Indian goods (including textiles, apparel, leather, footwear, organic chemicals, home décor, artisanal products, and certain machinery). This is a reduction from previous effective rates, which had reached up to 50% in some cases due to layered penalties. The 18% rate positions India more competitively compared to some other trading partners.
• Conditions and Safeguards: The 25% tariff could be reimposed if the US Secretary of Commerce determines that India resumes Russian oil imports. Any duties already collected will be refunded per US Customs and Border Protection procedures.
• Broader Trade Context: This follows a joint statement released by the White House outlining the interim agreement framework. India has agreed to eliminate or reduce tariffs on a range of US industrial goods and agricultural products, including dried distillers’ grains (DDGs), red sorghum, tree nuts, fresh/processed fruit, soybean oil, wine, spirits, and more. India also intends to purchase $500 billion worth of US energy products, aircraft and parts, precious metals, technology (including GPUs for data centers), and coking coal over the next 5 years. The deal aims to strengthen supply chain resilience and pave the way for a full Bilateral Trade Agreement (BTA), building on negotiations launched by Trump and PM Narendra Modi in February 2025.

This development resolves months of trade friction, during which the US used tariffs to push India to diversify away from discounted Russian crude (which at times accounted for over a third of India’s imports). Prime Minister Modi welcomed the framework, noting it reflects the “growing depth, trust, and dynamism” of the India-US partnership and will boost “Make in India,” create jobs, and open new opportunities in energy, defense, and technology.

The news is confirmed by major sources including the White House (official executive order and joint statement), Bloomberg, Reuters, The Hindu, Times of India, NDTV, and Hindustan Times. For the full text:

• White House Executive Order: “Modifying Duties to Address Threats to the United States by the Government of the Russian Federation” (February 6, 2026).
• US-India Joint Statement on the Interim Agreement (February 6, 2026).

This breakthrough strengthens bilateral ties, benefits Indian exporters across key sectors, and signals a shift in geopolitical energy dynamics.