Trump Lifts 25% Additional Tariff on India as Trade Deal Takes Effect
US President Donald Trump on Friday signed an executive order to lift the additional 25 percent tariff imposed on Indian goods over New Delhi's Russian oil purchases, implementing the trade deal announced earlier this week.
The additional US duty will be removed at 12:01 AM Eastern Time on Saturday.
Key Terms of Executive Order
"India has committed to stop directly or indirectly importing Russian Federation oil," the executive order stated. New Delhi has also pledged to purchase US energy products and "has recently committed to a framework with the United States to expand defense cooperation over the next 10 years."
$500 Billion Purchase Commitment
A separate joint statement released Friday by the White House detailed India's commitment to purchase $500 billion worth of American products over the next five years, including:
- US energy products
- Aircraft and parts
- Precious metals
- Technology products
- Coking coal
The agreement also removes tariffs on certain aircraft and parts.
Tariff Reduction Timeline
The deal marks a significant reduction in US tariffs on Indian products:
Timeline | Tariff Rate |
Late 2025 | 50% |
Additional levy imposed | +25% |
Post-deal (pending rollout) | 18% |
The reduction to 18 percent "reciprocal" tariffs is still to be implemented, but gives Indian exporters a slight edge over regional competitors facing duties of 19-20 percent, according to Wendy Cutler of the Asia Society Policy Institute.
Restoring Close Ties
The deal eases months of tensions over India's oil purchases from Russia, which Washington argued funded a conflict it seeks to end. Trump has described PM Modi as "one of my greatest friends," and the agreement restores the close bilateral relationship.
