In a major move following the announcement of a ‘historic’ trade pact between India and the United States, the US Customs and Border Protection (CBP) has officially withdrawn the 25 per cent additional tariff that was earlier imposed on Indian imports. The notification was issued on Tuesday, days after leaders from both nations confirmed a breakthrough in trade negotiations.
The Customs department stated that the relief will apply to Indian goods that enter the US for consumption or are cleared from warehouses, on or after February 7, 2026. The decision comes after US President Donald Trump signed an executive order last week cancelling the 25 per cent penalty that had been enforced in August 2025 over India’s purchase of Russian oil.
Additional duty formally withdrawn
The now-revoked tariff had been introduced under Executive Order 14329, issued on August 6, 2025. In its updated guidance, US Customs clarified that starting 12:01 am Eastern Time on February 7, 2026, Indian products will no longer be subject to the extra 25 per cent ad valorem duty. It also confirmed that the related Harmonized Tariff Schedule codes, 9903.01.84 through 9903.01.89, have been discontinued from that date.
However, the department emphasised that reciprocal tariffs imposed under Executive Order 14257 will continue to remain effective for Indian goods that do not qualify for exemptions.
Trade pact brings tariff reduction
The rollback follows a joint announcement by President Trump and Prime Minister Narendra Modi stating that both countries had agreed to reduce US tariffs on Indian goods from 50 per cent to 18 per cent under an interim trade framework. As part of the arrangement finalised last week, India will also cut or remove tariffs on several American industrial, agricultural and food products.
Energy purchases and defence cooperation
In the executive order, President Trump reiterated that India would halt purchases of Russian oil and expand energy imports from the United States. He further noted that India had recently committed to strengthening defence cooperation with the US over the next ten years.
While India has not officially confirmed stopping Russian oil imports, it has indicated openness to increasing energy purchases from the US and Venezuela. Once the interim trade framework is fully implemented, Washington is also expected to lift reciprocal tariffs on Indian exports such as pharmaceuticals, gemstones, diamonds and aircraft parts, although no timeline has yet been specified.
