3 Feb 2026
The 25% tariff will be dropped, given India’s agreement to stop buying Russian oil and switch to US and Venezuelan oil instead.
President Trump announced a reduction in the US “reciprocal” tariff on Indian goods from 25% to 18%. A separate punitive 25% levy linked to India’s Russian oil purchases will be dropped, bringing the effective rate down from 50% to 18%.
The move follows a call with Prime Minister Narendra Modi. Trump says India pledged to halt Russian oil imports and significantly increase purchases of US energy, technology, agricultural products, coal, and other goods, potentially exceeding $500 billion.
In return, India is expected to “move forward” toward reducing its tariffs and non-tariff barriers on US products to zero.
Prime Minister Modi thanked Trump for the tariff reduction but did not comment on any policy changes regarding Russian oil purchases.
India has depended on Russian oil for energy security. Even at the height of Western pressure in 2022–2025, India never committed to a full halt, only to staying within G7 price‑cap rules.
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