Trump Lifts 25% US Tariff on India but Issues Warning on Russian Oil Imports

Washington: US President Donald Trump has removed the 25% additional tariff imposed on imports from India, but issued a stern warning regarding any future purchases of Russian oil. The tariff had been levied last year over India’s continued imports of Russian crude.

On Friday, Trump signed an executive order officially lifting the additional duty on Indian goods. The White House confirmed that while the tariff relief takes effect immediately, any resumption of Russian oil imports by India could result in the tariff being reinstated.

White House Statement

According to the White House, the decision to remove the 25% tariff was made under the executive order, recognizing India’s commitment to halt both direct and indirect imports of Russian oil. The statement also highlighted India’s pledge to purchase US energy products and engage in a framework to expand defense cooperation with the United States over the next decade.

The executive order explicitly cautioned that Washington will continue to monitor India’s adherence to its commitment regarding Russian oil imports. Any violation could trigger the re-imposition of the tariff.

Relief for Indian Businesses

The tariff had been imposed in August last year, with Trump claiming that India’s purchase of Russian oil was indirectly funding Russia’s war in Ukraine. With the 25% additional duty, US tariffs on Indian goods had reached 50%, making them among the highest globally alongside Brazil. The levy posed significant risks for Indian exporters to the US. Recent signals from the Trump administration indicated the possibility of tariff relief, noting that India had sharply reduced its Russian oil imports.

While the removal of the 25% tariff offers much-needed relief for Indian exporters, the White House warning underscores that US scrutiny on Russia-related trade will remain strict.