The United States Customs and Border Protection has formally rescinded the additional 25 per cent tariff previously imposed on Indian goods, effective from February 7, 2026, following an executive order signed by US President Donald Trump last week. Under the revised guidance, products entered for consumption or withdrawn from warehouse on or after 12:01 a.m.
India Exempt From Executive Order
Eastern Tie on February 7 are no longer subject to the additional ad‑valorem duty imposed under Executive Order 14329, which was issued in August 2025 as a punitive measure linked to India’s energy purchases from Russia. However, officials clarified that reciprocal tariffs under Executive Order 14257 will remain in force for products that do not qualify for an exemption, meaning that some Indian exports may still face duties under normal tariff schedules.
Interim Agreement Reduces Tariff Rate
The executive order and subsequent US‑India interim trade framework reflect a broader effort to reset bilateral economic relations and address longstanding trade tensions. Under the interim agreement, the United States plans to apply a reciprocal tariff rate of 18 per cent on certain Indian goods, down from the earlier combined levy that reached up to 50 per cent at the height of the trade standoff.
Trade Relief Supports Indian Exports
The move follows commitments discussed by President Trump and Indian Prime Minister Narendra Modi to deepen trade and strengthen cooperation, including commitments on energy purchases and defense ties. India has signaled openness to increasing energy imports from the United States, even as it navigates its broader international energy strategy.
Market analysts say the tariff relief is expected to ease export pressures on Indian industries, though some sectors will continue to face higher duties due to other trade provisions still in effect.
