US President Donald Trump has lifted the 25 per cent tariff imposed on Indian goods over New Delhi’s purchases of Russian oil, citing that the country has undertaken “significant steps” and New Delhi has committed to stop directly or indirectly importing oil from Moscow.
The decision, formalised through an executive order signed on Friday, marks a reversal of a punitive measure imposed last year after Washington concluded that India continued importing Russian oil despite US-led efforts to choke Moscow’s energy revenues following its invasion of Ukraine.
“I have received additional information and recommendations from senior officials regarding India’s efforts to address the national emergency described in Executive Order 14066. Specifically, India has committed to stop directly or indirectly importing Russian Federation oil, has represented that it will purchase energy products from the United States, and has recently committed to a framework with the United States to expand defence cooperation over the next 10 years,” Trump said in an executive order.
“After considering the information and recommendations provided to me, I have determined that India has taken significant steps to address the national emergency described in Executive Order 14066 and to align sufficiently with the United States on national security, foreign policy, and economic matters,” Trump said in the order.
“Accordingly, I have determined to eliminate the additional ad valorem rate of duty imposed on imports of articles of India,” he said.
The US had imposed a special 25 per cent duty on Indian imports. This penalty was placed on top of an existing 25 per cent “reciprocal” tariff, sharply increasing the cost of Indian goods entering the US market.
On Friday, the United States and India also released a framework for an interim trade agreement. In a joint statement, both countries said the framework confirms their commitment to keep negotiating toward a broader bilateral trade agreement.
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“The United States and India will promptly implement this framework and work towards finalizing the Interim Agreement with a view to concluding a mutually beneficial BTA consistent with the roadmap agreed in the Terms of Reference,” the statement said.
