On February 6, 2025, President Trump signed an executive order titled Modifying Duties to Address Threats to the United States by the Government of the Russian Federation, rescinding the 25% IEEPA tariff imposed on India for its purchases of Russian oil, effective at 12:01 a.m. on February 7, 2025. The order allows for duty refunds as appropriate and directs the Department of Commerce to monitor India’s future oil imports from Russia, with the possibility of reinstating the tariff if such imports resume.
This action is part of a broader U.S.-India framework for an interim agreement reached on February 6, 2026. The White House issued a joint statement outlining key elements of the framework, in which the United States committed to reduce India’s reciprocal tariff on U.S. goods from 25% to 18%. The framework did not indicate when this reduction would go into effect and an additional executive order will likely be issued. In addition to the IEEPA reciprocal tariff reduction, the agreement provides that:
- India will eliminate or reduce tariffs on U.S. industrial, food, and agricultural goods.
- The U.S. will remove IEEPA reciprocal tariffs on select Indian goods and remove tariffs on certain Indian generic pharmaceuticals, gems and diamonds, aircraft, and aircraft parts.
- Both countries will address non-tariff barriers, improve market access, and align technical standards.
- India plans to purchase $500 billion in U.S. goods over five years, including energy, technology, and aircraft.
- Both sides commit to strengthening supply chain resilience, expanding digital trade, and promptly implementing the agreement as they work toward a comprehensive bilateral trade agreement.
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