US revokes 25% penalty tariff on India over Russian oil imports

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Washington DC: US President Donald Trump has signed an executive order revoking the additional 25 per cent tariff imposed on all imports from India over New Delhi’s purchases of Russian oil, the White House said.

United States announced the termination of the additional tariff imposed in August 2025 on Indian imports, citing concerns about Russia’s actions against Ukraine and India’s then-imports of Russian oil.

According to the White House, the decision follows a review of additional information and recommendations from senior US officials regarding India’s recent actions to address the national emergency declared under an executive order.

The administration said India has committed to stop directly or indirectly importing Russian Federation oil, pledged to purchase US energy products, and entered into a framework with Washington to expand defence cooperation over the next 10 years.

“After considering the information and recommendations these officials have provided to me, among other things, 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,” the executive order said, adding that the tariff modification was “necessary and appropriate” to deal with the ongoing national emergency.

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As a result, the additional 25 per cent duty imposed under a particular executive order will be eliminated, and related tariff provisions under the Harmonised Tariff Schedule of the United States will be terminated. The White House said that, where applicable, refunds of duties already collected will be processed in accordance with US law and standard procedures of US Customs and Border Protection.

The order authorises the Secretary of State, in coordination with other senior officials and departments, to take necessary steps to implement the decision, including issuing rules and regulations. The Secretary of Homeland Security, in consultation with the US International Trade Commission, may also make technical modifications to the tariff schedule by notice in the Federal Register.

The White House said the US will continue to monitor India’s compliance, particularly with respect to the import of Russian oil. If India resumes direct or indirect imports of Russian Federation oil, the administration may consider reimposing the additional tariff.

US had earlier imposed an additional 25% tariff on goods from India, saying the country directly or indirectly imported Russian oil.

(With inputs from ANI)

Also Read: India Unlikely to Abruptly End Russian Oil Imports Despite US Trade Deal Signals

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