United States President Donald Trump on Friday (local time) signed an executive order removing the 25% additional tariff on imports from India. This tariff had been imposed last year over India’s purchase of Russian oil. The White House confirmed that the duty has now been lifted, but warned that the tariff could be reinstated if India resumes importing oil from Russia. This move marks a significant step in easing trade tensions between the two countries.
While announcing the removal of the 25% additional tariff, the White House said the decision was made under an executive order. The Trump administration stated that India has pledged to cease importing oil from the Russian Federation, directly or indirectly, committed to purchasing US energy products, and entered into a framework agreement with Washington to expand defense cooperation over the next 10 years.
Warning issued on Russian oil purchases
The executive order states that the additional 25% tariff imposed under the order will be terminated. The White House warned that the US will continue to monitor India, particularly regarding its imports of Russian oil. If India resumes importing oil from the Russian Federation, either directly or indirectly, the administration may consider reimposing the additional tariffs.
The order read, “If the Secretary of Commerce finds that India has resumed directly or indirectly importing Russian Federation oil, the Secretary of State, in consultation with the Secretary of the Treasury, the Secretary of Commerce, the Secretary of Homeland Security, the United States Trade Representative, the Assistant to the President for National Security Affairs, the Assistant to the President for Economic Policy, and the Assistant to the President and Senior Counselor for Trade and Manufacturing, shall recommend whether and to what extent I should take additional action as to India, including whether I should reimpose the additional ad valorem rate of duty of 25 percent on imports of articles of India.”
PM Modi on India-US trade deal
Meanwhile, Prime Minister Narendra Modi stated that the agreement reflects the growing trust and partnership between the two nations and will create new opportunities for farmers, entrepreneurs, MSMEs, startups, and fishermen in India. In a post on X, he thanked President Donald Trump for his personal commitment to fostering robust relations between the two nations.
