The United States has announced a reduction in the tariff imposed on Indian goods in relation to India’s purchases of Russian oil. The new reciprocal tariff rate will be set at 18%, down from the previous 25%. This adjustment comes as a significant development amid ongoing geopolitical tensions resulting from the conflict between Russia and Ukraine.

U.S. President Donald Trump signed an executive order on Friday, February 6, 2026, to remove the punitive 25% additional tariff on Indian goods that had been in place since August 2025. The decision comes after the White House claimed that India has “committed to stop directly or indirectly importing Russian Federation oil” and instead represented that it will purchase energy products from the United States.

India’s Position as a Major Buyer

Since the beginning of the war between Russia and Ukraine in 2022, India has emerged as the largest purchaser of discounted Russian maritime crude oil. This decision has raised concerns among Western countries, which have imposed sanctions on Russia’s energy sector. These nations argue that revenues generated from oil sales are contributing to Russia’s military operations.

Western Countries’ Concerns

The apprehension regarding India’s oil purchases is rooted in the belief that the funds derived from oil exports support Russia’s ongoing military efforts. As the situation in Ukraine escalates, Western officials have consistently urged countries, including India, to reconsider their dealings with Russia to maintain pressure on the Kremlin.

Impact of the Tariff Reduction

The US’s decision to lower tariffs could ease some of the trade tensions existing between the two countries. It may also reflect an acknowledgment of India’s strategic importance and its position as a key player in the global energy market amidst rising oil prices.

Future Prospects for India-US Relations

This tariff reduction may pave the way for a deeper bilateral trade relationship between the US and India, which has been evolving over the past few years. As both nations navigate the complexities of the global economy, this move could facilitate increased economic collaboration while addressing the broader implications of international sanctions on Russia.

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