US President Donald Trump has signed an executive order to abolish the 25% additional tariff on all goods imported from India.

On February 6th, US President Donald Trump signed an executive order to abolish the 25% additional tariff on all goods imported from India – a measure previously imposed due to concerns about New Delhi purchasing oil from Russia – and to apply a new reciprocal tariff of 18%.

The new order stipulates that, effective February 7th, Indian products imported into the US will no longer be subject to the additional 25% tariff under Order 14329 – which was imposed due to concerns related to energy relations between India and Russia.

However, the White House said the U.S. would apply a retaliatory tariff of 18% under Executive Order 14257 (issued in April 2025) to address trade practices deemed to be contributing to the U.S.'s persistent goods trade deficit.

The new tariffs will apply to a wide range of goods originating from India, including textiles, footwear, plastics and rubber, organic chemicals, home furnishings, handicrafts, and certain types of machinery.

Despite lifting the higher tariffs, President Trump warned that Washington could reimpose the 25% tariff if it found that India continued to directly or indirectly import Russian oil. According to the executive order, the US Secretary of Commerce, in coordination with relevant agencies, will assess the situation and propose additional measures, including the possibility of reinstating the old tariffs.

Meanwhile, the joint US-India statement on the framework for a trade agreement, released on the same day, did not specifically mention New Delhi having to stop buying oil from Moscow.

Speaking on February 6th, Indian Commerce Minister Piyush Goyal stated that the two countries could finalize and sign a joint declaration on a bilateral trade agreement within the next 4-5 days. He also confirmed that the new 18% US tariffs would take effect after the document is signed.

Earlier, on February 3, President Trump announced that he had agreed to reduce tariffs on Indian goods from 25% to 18% at the request of Indian Prime Minister Narendra Modi.

Source: VTV

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