US Lifts Punitive Tariffs on India Following Strategic Commitments
In a major diplomatic and economic development, the administration of US President Donald Trump has officially lifted the 25 percent punitive tariff imposed on Indian imports. This decisive action comes after India made significant commitments to alter its energy procurement strategy and enhance defense ties with the United States.
Key Commitments from India
The executive order, signed by President Trump and titled "Modifying duties to address threats to the US by the Russian government," outlines three critical pledges from India:
- Ceasing Russian Oil Imports: India has committed to stop directly or indirectly importing oil from the Russian Federation.
- Purchasing US Energy Products: India has represented that it will buy energy products from the United States.
- Expanding Defense Cooperation: India has recently agreed to a framework with the US to expand defense cooperation over the next 10 years.
These elements form part of a larger strategic deal between the two nations, enabling India to secure the waiver from the punitive tariffs.
Timeline and Implementation
The tariffs have been withdrawn effective from 12:01 a.m. Eastern Standard Time on February 7, 2026, which corresponds to 10:30 a.m. Indian Standard Time. According to the order, products of India imported into the United States on or after this date will no longer be subject to the additional 25 percent ad valorem duty imposed under Executive Order 14329.
President Trump stated in the order, "I have determined that India has taken significant steps to address the national emergency described in Executive Order 14066 and to align sufficiently with the United States on national security, foreign policy, and economic matters."
Background and Diplomatic Context
This development places India in a diplomatically challenging position regarding its relationship with Russia. Since February 2022, India had increased its oil imports from Russia, taking advantage of discounted rates offered by Moscow. Delhi's rationale was based on commercial interests, aiming to cushion the inflationary impact of crude price hikes by sourcing from the most competitive suppliers.
India maintained that the government was not directly involved in oil purchases, with decisions made by private companies. This arrangement worked until President Trump assumed office last year and grew frustrated with attempts to broker peace between Russia and Ukraine over six months. Consequently, he targeted the biggest buyers of Russian energy, leading to the imposition of the 25 percent punitive sanctions on India.
Delhi was reportedly shocked to be singled out, as other major importers like China and Europe were not subjected to similar tariffs. Since August of the previous year, when the tariffs took effect, Indian goods faced a total of 50 percent duties from the US, including 25 percent reciprocal tariffs due to the absence of a concluded trade deal.
India's Response and Shifting Trends
There has been no immediate official response from Delhi following the latest order. However, on February 5, India commented on President Trump's earlier social media post, stating that it was "diversifying energy sourcing" in line with "objective market conditions and evolving international dynamics."
In practice, India began reducing its oil imports from Russia starting in September, with a clear declining trend observed over the last five months. This shift aligns with the commitments made to the US, signaling a strategic realignment in India's foreign policy and trade relations.
Strategic Implications
The removal of tariffs underscores the strengthening of US-India ties, particularly in defense and energy sectors. The 10-year framework for expanded defense cooperation marks a significant step in bilateral relations, potentially countering regional security challenges.
Economically, this move relieves Indian exporters from the burden of additional tariffs, which had compounded existing trade tensions. It also reflects the Trump administration's approach to leveraging economic measures to achieve foreign policy objectives, such as isolating Russia amid ongoing conflicts.
As India navigates this new landscape, balancing its historical ties with Russia against emerging partnerships with the US will be crucial. The commitment to stop importing Russian oil represents a substantial shift, driven by both diplomatic pressure and strategic calculations.
