US Customs Removes Extra 25 percent Tariff on Indian Goods

The United States Customs and Border Protection (CBP) officially withdrew the additional 25 percent tariff on goods imported from India. The agency made the change effective for products that enter the US or leave bonded warehouses on or after February 7, 2026. The updated guidance confirms that Executive Order 14329 no longer applies the extra duty to Indian imports.

US President Donald Trump signed an executive order on February 6, 2026, and eliminated the tariff penalty on India’s energy purchases, including those linked to Russian oil. The White House described the decision as part of a broader strategy to strengthen trade relations between the two countries.

CBP clarified that Indian-origin goods entering for consumption or leaving warehouses for consumption after 12:01 a.m. Eastern Time on February 7 will not face the 25 per cent additional duty. The agency also discontinued the Harmonized Tariff Schedule codes that covered these extra tariffs.

However, the guidance states that reciprocal tariffs under Executive Order 14257 will continue for Indian goods that do not qualify for exemptions. The US government introduced these reciprocal tariffs to address trade imbalances, and authorities will continue to apply standard duties to several products.

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US removes 25 percent tariff on Indian imports starting February 7

India and the United States recently agreed on an interim trade framework, and both governments expect it to reduce overall tariff rates as they move toward a broader agreement. The framework outlines reciprocal tariff cuts and includes commitments to expand market access on both sides.

The US decision gives immediate relief to Indian exporters, and officials expect further tariff reductions on pharmaceuticals, gemstones, diamonds, and aircraft parts after authorities implement the interim agreement.

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