US President Donald Trump signed an executive order last week eliminating the 25% tariff penalty that his administration had imposed in August 2025 over India’s purchase of Russian oil. Following the order, the Customs department clarified that products from India entering the US market for consumption or withdrawn from warehouses on or after February 7, 2026, will no longer attract the additional ad valorem duty.
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Trump ends tariff penalty reciprocal duties remain
In its updated guidance, CBP stated that Indian goods would not remain subject to the 25% duty imposed under Executive Order 14329. As a result, specific Harmonized Tariff Schedule (HTSUS) headings related to the penalty have been discontinued from February 7. However, US authorities confirmed that reciprocal tariffs introduced under a separate executive order will continue to apply to Indian products that do not qualify for exemptions.
The move follows a broader trade understanding between Trump and Prime Minister Narendra Modi. Under the interim framework, the US agreed to reduce tariffs on Indian goods from 50% to 18%. In return, India committed to lowering and removing tariffs on several American industrial, agricultural and food products.
In his executive order, Trump reiterated that India would halt purchases of Russian oil and expand energy imports from the United States. He also highlighted India’s commitment to strengthening defence cooperation with the US over the next decade. While India has not formally confirmed stopping Russian oil imports, it has indicated willingness to increase energy purchases from the US and Venezuela.
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