Trump Signs Executive Order Lifting 25% Tariff Penalty on India for Buying Russian Oil

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Trump Signs Executive Order Lifting 25% Tariff Penalty on India for Buying Russian Oil

US President Donald Trump has signed an executive order scrapping the 25% tariff penalty on India tied to Russian oil purchases, following a new interim trade agreement between New Delhi and Washington.

Published by Priti | February 07, 2026

US President Donald Trump has signed an executive order removing the 25% tariff penalty imposed on India for purchasing Russian energy, days after India and the United States announced an interim trade agreement aimed at lowering trade barriers.

The order, signed on Friday (local time), eliminates the penalty introduced in August and confirms that reduced tariffs on Indian exports—cut from 50 percent to 18 percent—will take effect from 12:01 AM EST on February 7.

In the executive order, Trump asserted that India has committed to halting imports of Russian oil and increasing purchases of US energy resources. The document also notes an understanding to expand defence cooperation between the two countries over the coming decade.

“India has committed to stop directly or indirectly importing Russian Federation oil and has taken significant steps to align with the United States on national security, foreign policy and economic matters,” the order stated.

The tariff rollback coincided with the release of a joint statement outlining the framework for a broader interim trade agreement between New Delhi and Washington. However, India has not publicly confirmed any decision to cease Russian oil imports and has consistently maintained that its energy procurement is guided by national interest and energy security needs.

The executive order establishes a monitoring mechanism to track India’s energy purchases. US Commerce Secretary Howard Lutnick, working with the Secretaries of State and Treasury, will oversee compliance. The order warns that the United States may consider reimposing the 25 percent tariff penalty if India resumes importing Russian oil.

The development marks a significant moment in evolving US–India trade and strategic relations, particularly in the areas of energy cooperation, tariffs and long-term defence alignment.