President Donald Trump signed an executive order removing the 25% Russia-related penalty tariff on Indian goods, a move presented as the enforcement mechanism for a comprehensive trade arrangement aimed at reducing India’s economic reliance on the Russian Federation.
The order includes a detailed statement of India’s commitments. In the text of the order the president said:
“India has committed to stop directly or indirectly importing Russian Federation oil, has represented that it will purchase United States energy products from the United States, and has recently committed to a framework with the United States to expand defense cooperation over the next 10 years,”and it notes India’s pledge to buy $500 billion in American energy, aircraft, and technology across the coming five years.
As part of the new arrangement, the United States will implement a reciprocal levy of 18% as the baseline tariff on a set of Indian exports, specifically naming categories such as textiles, leather goods, and organic chemicals. That 18% baseline remains in place even as the administration agreed to eliminate certain extra duties that had applied to strategic sectors.
The agreement explicitly removes additional U.S. duties on selected critical Indian exports, citing exemptions for products including generic pharmaceuticals, gems, and aircraft parts. Those sector-specific duty removals sit alongside concessions secured from New Delhi.
On the other side of the ledger, India has agreed to reduce or remove tariffs on a range of U.S. products that are important to American agricultural and industrial producers. The list of items identified for tariff relief includes soybean oil, distilled spirits, dried distillers’ grains, and fresh fruit. The deal also requires India to address long-standing non-tariff barriers that have impeded U.S. medical device and information and communications technology (ICT) exporters.
A joint statement referenced by the order frames these measures within an economic security agenda: the two countries intend to "strengthen economic security alignment to enhance supply chain resilience and innovation through complementary actions to address non-market policies of third parties."
The formal removal of the 25% Russia-related surcharge becomes effective at 12:01 a.m. Washington time on February 7. Both governments describe the arrangement as an interim milestone on the path to a broader Bilateral Trade Agreement that would establish a more permanent economic and security framework.
While the order adjusts tariff levels and outlines reciprocal commitments, it stops short of declaring a final, comprehensive trade accord. The interim nature of the steps adopted suggests further negotiations will be required to convert the framework into a lasting bilateral architecture.