Trump Rescinds 25 Percent Tariffs Imposed on India
The directive states that New Delhi has committed to halting all direct and indirect petroleum purchases from Russia, opting instead for American energy supplies.
An interim trade framework was simultaneously unveiled via joint statement between Washington and New Delhi—a preliminary step toward finalizing a comprehensive Bilateral Trade Agreement under negotiation for more than twelve months. The announcement follows Trump and Indian Prime Minister Narendra Modi's earlier disclosure of a finalized arrangement, though specifics were withheld at the time.
Commerce Minister Piyush Goyal revealed the agreement unlocks access to a $30 trillion marketplace for Indian exporters, slashing reciprocal duties from 50%—which incorporated the 25% Russian oil penalty—down to 18%. Zero-tariff provisions will apply to select categories including generic pharmaceuticals, gems, diamonds, and aircraft components, Goyal confirmed.
Modi praised the framework, stating it "reflects the growing depth, trust and dynamism of our partnership."
During this week's announcement, Trump asserted tariff reductions followed Modi having "agreed to stop buying Russian oil" while committing to expanded energy procurement from the US and possibly Venezuela.
New Delhi has yet to publicly verify any cessation of Russian petroleum imports. Moscow maintains it has received no notification regarding India's supply termination.
India previously justified its Russian trade relations as essential to national interests and energy security for its 1.4 billion citizens.
Addressing the agreement Wednesday, Goyal emphasized energy security remains the "supreme priority" of the government, noting diversification of energy sources is "at the core of our strategy to ensure this."
Foreign Ministry spokesperson Randhir Jaiswal confirmed Thursday that India remains receptive to purchasing oil from multiple suppliers.
The executive order asserts India has implemented "significant steps" addressing US apprehensions over Russian oil transactions and to "align sufficiently with the United States on national security, foreign policy and economic matters." A tracking system is embedded within to verify India's compliance with the Russian oil prohibition and determine potential tariff reinstatement.
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