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Indian goods no longer subject to additional 25% tariff, US Customs notifies rule
The department said that duties would be removed for products from India which enter for consumption or are withdrawn from warehouse on or after February 7.
Days after the India and the United States announced a 'historic' trade deal, the US Customs and Border Protection on Tuesday notified the removal of 25 per cent additional tariffs on Indian goods.
Referring to a White House statement, the Customs department said that duties would be removed for products from India which enter for consumption or are withdrawn from warehouse on or after February 7.
The Customs department release came after US President Donald Trump signed an executive order on Friday last week eliminating the 25 per cent tariff penalty imposed on India in August, 2025 over the purchase of Russian oil.
This comes after US President Trump and Prime Minister Narendra Modi announced that India and the US had agreed on a trade deal that would see tariffs on India reduced from 50% to 18%.
What US Customs release said
The Customs and Border Protection document said the additional 25% tariff duty would not be applicable to India, adding that the reciprocal tariff will remain in place.
In an updated guidance modifying the additional duties on imports from India, the US Customs stated, “Products of India entered for consumption or withdrawn from warehouse for consumption on or after 12:01 a.m. eastern time on February 7, 2026, are no longer subject to the additional ad valorem duty rate of 25 percent imposed by EO 14329, “Addressing Threats to the United States by the Government of the Russian Federation” signed on August 6, 2025. As a result, Harmonized Tariff Schedule of the United States (HTSUS) headings 9903.01.84-9903.01.89 are no longer in use as of February 7, 2026.”
It further stated, “The Reciprocal Tariffs imposed by EO 14257, “Regulating Imports with a Reciprocal Tariff to Rectify Trade Practices That Contribute to Large and Persistent Annual United States Goods Trade Deficits,” as amended, remain in effect for products of India that do not qualify for an exemption.”
In his executive order, Trump repeated the claim that India would stop purchasing Russian oil and increasing energy purchases from US. The order further stated that India had also “recently committed to a framework with the United States to expand defense cooperation over the next 10 years.”
While India has not confirmed the halt of Russian energy purchase, New Delhi has signalled an openness to the increase in energy purchase from US and Venezuela.
India and US finalised the framework for an interim trade deal last week, which included the reduction of US tariffs on Indian goods. Under the agreement, India will also be removing and reducing tariffs on US industrial, food and agricultural goods. While there has been no specified timeline for it, once the interim framework is implemented, the US is also expected end reciprocal tariffs on Indian goods such as medicines, gemstones and diamonds, and aircraft parts.
