The Trump administration has officially issued an executive order lifting the 25% additional tariff previously imposed on Indian imports. The move comes after India committed to a strategic shift away from Russian energy and toward deeper defense and economic ties with the United States.
Terms of the Agreement
The lifting of the penalty, which had been in place for six months, is contingent upon three core commitments from the Indian government:
- Cessation of Russian Oil Imports: India has committed to stop both direct and indirect imports of oil from the Russian Federation.
- Purchase of US Energy: India has represented that it will significantly increase its purchase of United States energy products.
- Expanded Defense Cooperation: Both nations have committed to a new framework to expand defense cooperation over the next 10 years.
Effective Date and Monitoring
The withdrawal of the 25% ad valorem rate of duty took effect at 12:01 am EST on February 7, 2026.
To ensure compliance, the executive order has established a strict monitoring mechanism. The Secretary of Commerce, in coordination with the State and Treasury departments, is tasked with tracking India’s energy sourcing. If India is found to have resumed importing Russian oil, the administration has reserved the right to immediately reimpose the 25% tariff.
Diplomatic Balancing Act
The decision puts New Delhi in a complex diplomatic position. Since the 2022 invasion of Ukraine, India had significantly increased its intake of discounted Russian crude to shield its 1.4 billion citizens from global inflationary pressures.
In a statement on February 5, the Ministry of External Affairs (MEA) emphasized that “ensuring energy security is the supreme priority,” while noting that India is “diversifying energy sourcing” in response to “evolving international dynamics.”
Data Trends: A Shift in Sourcing
Recent tanker data suggests the transition is already underway. Following U.S. sanctions against Russian oil giants Rosneft and Lukoil, India’s imports of Russian oil have dropped to a three-year low:
- 2025 Peak (June): 2.09 million barrels per day (bpd).
- January 2026: 1.16 million bpd.
Strategic Implications
President Trump’s signed order, titled ‘Modifying duties to address threats to the US by the Russian government’, signifies a “maximum pressure” tactic that has successfully pivoted one of the world’s largest energy consumers. By aligning with U.S. national security and economic interests, India avoids the heavy economic burden of the tariffs while strengthening its decade-long defense roadmap with Washington.
Source: The Indian Express
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