Days after India and the US announced a ‘historic’ trade deal, the US Customs and Border Protection on Tuesday notified the removal of an additional 25 per cent tariff on Indian goods.
This comes after US President Donald Trump last week signed an executive order waiving the 25% tariff penalty. (AFP)Citing a statement from the White House, the customs department said that duties will be waived on goods entering India for consumption or withdrawn from warehouses on or after February 7.
The Customs Department released the following after US President Donald Trump signed an executive order Last week Friday scrapped the 25 percent tariff penalty imposed on India in August, 2025 for buying Russian oil.
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This comes after US President Trump and Prime Minister Narendra Modi announced that India and the US have agreed a trade deal that will see tariffs on India reduced from 50% to 18%.
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As stated in the US Customs NoticeThe Customs and Border Protection document states that the additional 25% tariff duty will not apply to India, adding that reciprocal duties will remain in place.
In an updated directive changing the additional duty on imports from India, US Customs said, “Goods from India entered for entry or withdrawn from warehouses for consumption on or after 12:01 a.m. Eastern Time on February 7, 2026, are no longer subject to an additional ad valorem duty of 25 percent E49%” in the United States by the Government of the Russian Federation signed on August 6, 2025. Consequently, United States (HTSUS) headings 9903.01.84-9903.01.89 are no longer in use as of February 7, 2026.
It further stated, “Reciprocal duties imposed by EO 14257, “Controlling Imports with a Reciprocal Tariff to Correct Trade Practices Contributing to Large and Persistent Annual United States Merchandise Trade Deficits,” as amended, will remain in effect for products from India that do not qualify for the former.”
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In his executive order, Trump reiterated demands that India stop buying Russian oil and increase energy purchases from the United States. The order also said that India had recently “committed to a framework with the US to expand defense cooperation over the next 10 years.”
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While India has not confirmed ending Russian energy purchases, New Delhi has signaled openness to increasing energy purchases from the US and Venezuela.
India and USA have finalized Structure of an Interim Trade Agreement Last week, that included a reduction in US tariffs on Indian goods. Under the agreement, India will eliminate and reduce tariffs on US industrial, food and agricultural products. Although there is no specific timeline for this, once the interim framework is in place, the US is expected to end reciprocal tariffs on Indian products such as pharmaceuticals, gemstones and diamonds, and aircraft parts.
