Trump Removes India’s 25% Russia-Related Tariff After Deal

Courtney Subramanian and Weilun Soon

February 7, 2026 3 min read

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(Bloomberg) – President Donald Trump eliminated the extra 25% tariff he had imposed on Indian goods over the country’s purchases of Russian oil, the first step to cement the terms of a trade deal the two nations announced earlier this week.

“India has committed to stop directly or indirectly importing Russian Federation oil, has represented that it will purchase United States energy products from the United States, and has recently committed to a framework with the United States to expand defense cooperation over the next 10 years,” Trump said in an executive order released by the White House.

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In a separate joint statement, the US said it would cut the so-called “reciprocal” levy faced by products from India, bringing the effective tariff rate to 18%. The elimination of the 25% tariff will go into effect at 12:01 a.m. Washington time on February 7.

India’s purchases of Russian oil have been a major point of discussion in trade talks between Washington and New Delhi. While India’s Ministry of Commerce didn’t confirm Trump’s statement in the Executive Order that the country will halt purchases of Russian oil, the US directives will help further ease tensions between the two countries, as they work to implement the provisions of the agreement that Trump announced after a phone call with Indian Prime Minister Narendra Modi.

The new rate offers significant relief for India, which has seen its exports tariffed at 50% since last summer — the highest charge on products from any major Asian trading partner. Trump said Modi’s efforts to curb purchases of Russian crude oil led him to lower duties.

In return, India also agreed to buy $500 billion of American products and eliminate trade barriers on US goods, including agriculture, manufactured items, chemicals and medical devices. That will require more work from New Delhi, US Trade Representative Jamieson Greer told CNBC earlier this week.

“President Trump’s dealmaking is unlocking one of the largest economies in the world for American workers and producers, lowering tariffs for all U.S. industrial goods and a wide array of agricultural products,” Greer said Friday in a statement. “Today’s announcement demonstrates the deepening ties between the United States and India as we create new opportunities for farmers and entrepreneurs in both countries.”

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As part of the deal, the US will also remove tariffs on certain aircraft and aircraft parts while India agreed to address non-tariff barriers to US food and agricultural products. India will receive a preferential tariff rate quota on automobile parts and generic pharmaceuticals.

India’s purchases are expected to include US energy products, aircraft and aircraft parts, precious metals, technology products, and coking coal, the countries said in the joint statement. The countries are also expected to significantly increase trade in technology products, including advanced chips for data centers.

India’s investment agreement remains murky. The $500 billion in purchases will be stretched over five years and include areas such as data centers and energy, but also factor in some existing projects.

The deal comes on the heels of India’s landmark free-trade agreement with the European Union, which saw the two agree to slash tariffs on imported goods to nearly zero over a number of years. Canada, too, inked a deal with China as part of a broader effort to offset the Trump administration’s punitive tariffs on its trading partners.

–With assistance from Skylar Woodhouse and Shruti Srivastava.

(Updates paragraph 4 to include statement from India’s Ministry of Commerce.)

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