U.S. President Removes Additional 25% Tariff from 7 Feb 2026 on
Indian Imports Citing 10 Year Deal on Defence and Purchase of US Oil and Coal
Ř Russian Oil Tariff
Lasted for Seven Months from 6 August 2025
Ř India-US Joint
Statement Released, 25% Tariff will be Cut to 18%
·
Legal Authority Invoked:
The order is issued under the U.S. Constitution and laws including IEEPA, the
National Emergencies Act, the Trade Act of 1974, and related statutes.
·
Background of Sanctions:
o Executive Orders 14024
(2021) and 14066 (2022) declared and expanded a national emergency in response
to Russia’s actions against Ukraine.
o These orders banned
imports of Russian-origin oil and petroleum products into the U.S.
·
Additional Tariff on India (2025):
o Executive Order 14329
(August 6, 2025) imposed an additional 25% ad valorem duty on Indian imports
due to India’s direct or indirect import of Russian oil.
o The measure was framed
as necessary to address national security and foreign policy concerns.
·
India’s Corrective Actions:
o India committed to
stopping direct or indirect imports of Russian Federation oil.
o India agreed to
purchase U.S. energy products.
o India entered into a
framework with the U.S. to expand defense cooperation
over the next 10 years.
·
Presidential Determination:
o The President concluded
that India has taken significant steps to address the national emergency under
EO 14066.
o India is deemed
sufficiently aligned with the U.S. on national security, foreign policy, and
economic matters.
·
Tariff Removal Decision:
o The additional 25% duty
on Indian imports imposed under EO 14329 is eliminated.
o The modification is
considered necessary and appropriate to deal with the continuing national
emergency.
·
Effective Date:
o Tariff removal applies
to goods entered for consumption or withdrawn from warehouses on or after 12:01 a.m. EST, February 7, 2026.
·
HTS Changes:
o HTS headings 9903.01.84
through 9903.01.89 and subdivision (z) of U.S. Note 2, Subchapter III, Chapter
99 are terminated.
o Refunds of duties
already collected will be processed under standard U.S. Customs procedures.
·
Implementation Authority:
o The Secretary of State,
in consultation with key departments and agencies, is authorized to implement
the order and issue necessary regulations.
o The Secretary of
Homeland Security may amend the Harmonized Tariff Schedule through Federal
Register notices if required.
·
Monitoring Mechanism:
o The Secretary of
Commerce will monitor whether India resumes importing Russian oil.
o If India resumes such
imports, senior officials will recommend whether the 25% tariff should be
reimposed.
·
Safeguards and Legal Clauses:
o The order does not
override existing legal authorities or create enforceable rights.
o Implementation is
subject to applicable law and availability of appropriations.
·
Publication Costs:
o Costs for publishing
the order will be borne by the U.S. Department of State.
Modifying Duties to Address Threats to the
United States by the Government of the Russian Federation
By the authority vested in me as President by the Constitution and the laws
of the United States of America, including the International Emergency Economic
Powers Act (50 U.S.C. 1701 et seq.) (IEEPA), the National Emergencies Act
(50 U.S.C. 1601 et seq.), section 604 of the Trade Act of 1974, as amended
(19 U.S.C. 2483), and section 301 of title 3, United States Code, I hereby determine
and order:
Section 1. Background. Executive Order 14066 of March 8, 2022 (Prohibiting
Certain Imports and New Investments With Respect to Continued Russian Federation
Efforts To Undermine the Sovereignty and Territorial Integrity of Ukraine), expanded
the scope of the national emergency declared in Executive Order 14024 of April 15,
2021 (Blocking Property With Respect To Specified Harmful Foreign Activities of
the Government of the Russian Federation), to include the actions taken against
Ukraine by the Government of the Russian Federation. To address that unusual and extraordinary threat
to the national security and foreign policy of the United States, Executive Order
14066 prohibited, among other things, the importation into the United States of
certain products of Russian Federation origin, including crude oil; petroleum; and
petroleum fuels, oils, and products of their distillation.
In Executive Order 14329 of August 6, 2025 (Addressing Threats to the United
States by the Government of the Russian Federation), I found that the national emergency
described in Executive Order 14066 has continued and that the actions and policies
of the Government of the Russian Federation continue to pose an unusual and extraordinary
threat to the national security and foreign policy of the United States. To deal with that threat, I determined that it
was necessary and appropriate to impose an additional ad valorem rate of
duty of 25 percent on imports of articles of India, which, at that time, was directly
or indirectly importing Russian Federation oil.
I have received additional information and recommendations from senior officials
regarding India’s efforts to address the national emergency described in Executive
Order 14066. Specifically, 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.
After considering the information and recommendations these officials have
provided to me, among other things, I have determined that India has taken significant
steps to address the national emergency described in Executive Order 14066 and to
align sufficiently with the United States on national security, foreign policy,
and economic matters. Accordingly, I have
determined to eliminate the additional ad valorem rate of duty imposed on
imports of articles of India pursuant to Executive Order 14329. In my judgment, this modification is necessary
and appropriate to deal with the national emergency declared in Executive Order
14066.
Sec. 2. Tariff
Modifications. Effective with respect
to goods entered for consumption, or withdrawn from the warehouse for consumption,
on or after 12:01 a.m. eastern standard time on February 7, 2026, products of India
imported into the United States shall no longer be subject to the additional ad
valorem rate of duty of 25 percent imposed pursuant to Executive Order 14329. Accordingly, effective 12:01 a.m. eastern standard
time on February 7, 2026, headings 9903.01.84 through 9903.01.89 and subdivision
(z) of U.S. Note 2 to subchapter III of chapter 99 of the Harmonized Tariff Schedule
of the United States are hereby terminated.
To the extent that implementation of this order requires a refund of duties
collected, refunds shall be processed pursuant to applicable law and the standard
procedures of U.S. Customs and Border Protection for such refunds.
Sec. 3. Implementation. (a) The
Secretary of State, in consultation with the Secretary of the Treasury, the Secretary
of Commerce, the Secretary of Homeland Security, the United States Trade Representative,
the Assistant to the President for National Security Affairs, the Assistant to the
President for Economic Policy, and the Assistant to the President and Senior Counselor for Trade and Manufacturing, is hereby authorized
to take such actions, including adopting rules and regulations, and to employ all
powers granted to the President by IEEPA as may be necessary to implement this order. The Secretary of State may, consistent with applicable
law, redelegate any of these functions within the Department of State. Each executive department and agency shall take
all appropriate measures within its authority to carry out this order.
(b) The Secretary of Homeland Security,
in consultation with the United States International Trade Commission, shall determine
whether modifications to the Harmonized Tariff Schedule of the United States are
necessary to effectuate this order and may make such modifications through notice
in the Federal Register.
Sec. 4. Monitoring
and Recommendations. The Secretary of
Commerce, in coordination with the Secretary of State, the Secretary of the Treasury,
and any other senior official the Secretary of Commerce deems appropriate, shall
monitor whether India resumes directly or indirectly importing Russian Federation
oil, as defined in section 7 of Executive Order 14329. If the Secretary of Commerce finds that India
has resumed directly or indirectly importing Russian Federation oil, the Secretary
of State, in consultation with the Secretary of the Treasury, the Secretary of Commerce,
the Secretary of Homeland Security, the United States Trade Representative, the
Assistant to the President for National Security Affairs, the Assistant to the President
for Economic Policy, and the Assistant to the President and Senior Counselor for Trade and Manufacturing, shall recommend whether
and to what extent I should take additional action as to India, including whether
I should reimpose the additional ad valorem rate of duty of 25 percent on
imports of articles of India.
Sec. 5. General
Provisions. (a) Nothing in this order shall be construed to impair
or otherwise affect:
(i) the
authority granted by law to an executive department or agency, or the head thereof;
or
(ii) the functions of the Director
of the Office of Management and Budget relating to budgetary, administrative, or
legislative proposals.
(b) This order shall be implemented
consistent with applicable law and subject to the availability of appropriations.
(c) This order is not intended to,
and does not, create any right or benefit, substantive or procedural, enforceable
at law or in equity by any party against the United States, its departments, agencies,
or entities, its officers, employees, or agents, or any other person.
(d) The costs for publication of this
order shall be borne by the Department of State.
DONALD J. TRUMP
THE WHITE HOUSE,
February 6, 2026.