The Washington administration intends to remove additional 25% tariffs imposed by the United States on Indian goods due to the purchase of Russian oil, The Washington Post reported.
A White House official told the publication that the US government “will remove additional 25% tariffs imposed by Trump in August [2025] to punish India for purchasing Russian oil“.
On August 6 last year, Trump signed an executive order imposing these measures on India. It increased tariffs on Indian goods imported into the United States to 50%, taking into account previously imposed tariffs, which the Washington administration calls "retaliatory".
Earlier on Monday, Trump announced that the United States and India had agreed to a deal on the future terms of bilateral trade. He specified that the United States intends to reduce the retaliatory tariff rate from 25% to 18%. Trump said that Indian Prime Minister Narendra Modi had agreed in a phone call with him to stop buying Russian oil and switch to buying fuel from the United States and possibly from Venezuela. However, Trump did not specify at the time whether the US would cancel the 25% tariffs imposed on India due to the purchase of Russian oil.
The American leader has repeatedly claimed that India is reducing its purchases of Russian oil.
The trade agreement concluded between India and the US will allow India to acquire American technology, Piyush Goyal said at the 10th meeting of the Indian Ministry of Commerce and Industry.
„This agreement opens unprecedented opportunities for farmers, micro, small and medium enterprises, entrepreneurs and skilled workers to produce in India for the world, design in India for the world and innovate in India for the world. It will help India source technology from the United States,” he said.
According to the minister, the partnership with Washington “will allow us to co-create technology, co-develop solutions and work together for peace, growth and a brighter future for India and the United States.”
Exporters and experts are waiting for a US executive order to get a clearer picture of the deal. The think tank GTRI said clarity is needed on which products are covered by the agreement and the timeline for its implementation.
Subhash Chander Ralhan, president of the Federation of Indian Export Organisations, said the deal will be a game-changer for the competitiveness of Indian exports compared to other Asian suppliers. “This is expected to lead to an immediate and significant resumption of orders that were previously suspended, especially in labor-intensive sectors such as apparel, textiles, leather and footwear, where global buyers usually enter into summer contracts for delivery by December,“ Ralhan noted.
According to data from the Indian Ministry of Commerce, India's merchandise exports to the US fell by 1.83% to $6.88 billion in December 2025 due to the high tariffs imposed by Washington.