Washington: US President Donald Trump has withdrawn the additional 25 percent tariff imposed on Indian exports, citing commitments by New Delhi to end the purchase of Russian crude oil and deepen strategic cooperation with Washington.
The decision was formalised through a new executive order issued by the White House, reversing a trade penalty that had been in place since August 2025. The levy was originally introduced on national security grounds, with the US administration linking it to India’s continued energy trade with Russia in the aftermath of Moscow’s invasion of Ukraine.
In the latest order, Trump said he had concluded that India had taken “meaningful and measurable actions” to respond to the national emergency declared by the United States in 2022 over Russia’s military actions. Among the steps cited were India’s assurance that it would stop both direct and indirect imports of Russian oil, scale up purchases of American energy supplies, and expand defence and security cooperation with the US over the coming decade.
“India has demonstrated sufficient alignment with the United States on matters of national security, foreign policy and economic engagement,” the order stated, adding that lifting the additional duty was “appropriate and necessary” in light of those commitments.
The now-scrapped 25 per cent ad valorem duty had been imposed under US emergency economic powers, which allow the president to enact trade measures in response to perceived threats to national security or foreign policy interests.
Trade and industry officials said the removal of the tariff is likely to provide relief to Indian exporters, who had faced higher costs and reduced competitiveness in the US market. The move is also being seen as a recalibration of Washington’s stance towards New Delhi, reflecting a broader push to strengthen bilateral ties.
The tariff rollback coincides with the announcement of an interim trade arrangement between the two countries, aimed at improving market access, reinforcing supply chains and boosting economic cooperation at a time of shifting global trade dynamics.
