Trump signs executive order lifting 25% tariff penalty on India for buying Russian oil

US President Donald Trump has signed an executive order removing the 25% tariff penalty imposed on India for purchasing Russian energy, days after New Delhi and Washington announced an interim trade deal lowering tariffs on Indian goods.

The order, signed on Friday (local time), eliminates the penalty that was imposed in August and confirms that reduced tariffs—cut from 50% to 18%—will apply to Indian exports from 12:01 AM EST on February 7.

Tariff relief tied to energy assurances

In the executive order, Trump reiterated his claim that India has committed to stop importing Russian oil and instead increase purchases of US energy products. It also states that India has agreed to a framework to expand defence cooperation with the United States over the next decade.

“India has committed to stop directly or indirectly importing Russian Federation oil and has taken significant steps to align with the United States on national security, foreign policy and economic matters,” the order said.

The tariff rollback coincided with the release of a joint statement by New Delhi and Washington outlining a framework for an interim trade agreement.

India, however, has not confirmed Trump’s assertion that it will cease buying Russian energy. New Delhi has consistently defended its oil imports from Russia, saying decisions are guided by national interest and the need to ensure energy security for its large population.

Also Read: United States–India interim trade agreement framework: comprehensive report

The executive order also establishes a monitoring mechanism to verify India’s energy purchases. US Commerce Secretary Howard Lutnick, in coordination with the Secretaries of State and Treasury, has been tasked with overseeing compliance.

If India resumes importing Russian oil, the US administration may consider reimposing the 25% tariff penalty, the order warned.