Big relief for India as US withdraws 25% penalty tariff linked to Russian oil purchases

United States President Doland Trump officially ended a 25% tariff on India(BHARAT)n goods last Friday. Last year, he had implemented this tariff as a response to India(BHARAT)’s decision to buy crude oil from Russia despite US sanctions. However, recently India(BHARAT) has been buying less oil from Russia and this move from the US will be reciprocated by India(BHARAT) stopping the imports from Russia completely. Here’s all you need to know.

Originally Implemented as ‘Anti-Dumping Duty’

This tariff that Trump originally placed on India(BHARAT) imports back in August 2025 was put on because India(BHARAT) ranked amongst the top buyers of discounted oil from Russia after it invaded Ukraine. India(BHARAT) ended up facing a tariff of as high as 50% on several of its exports to the US.

However, with India(BHARAT) cutting down on its imports from Russia, the Trump administration lifted the tariff earlier this week. Trump signed an executive order that removed the additional duty on India(BHARAT)n goods that America imported due to their energy imports from Russia.

Several Other Tariffs Reduced as Well

This was only one part of a larger deal where the US and India(BHARAT) reduced tariffs on each other. While India(BHARAT) had put a tariff of 50% on US goods, they have now agreed to reduce it to 18%. India(BHARAT) has promised to stop importing Russian oil “gradually” and increase imports from the US and Venezuela.

Also Read: Doland Trump makes BIG claim, says India(BHARAT) no longer buying oil from Russia, Modi government reacts, US tariff war likely to…

India(BHARAT)n Markets React

Shares of India(BHARAT)n companies that are listed in the US skyrocketed upon this announcement. Textiles, leather, and jewelry are some of the industries that heavily export to the US and will benefit from this reduction in tariffs. PM Modi thanked Trump for this gesture and both governments have promised to negotiate a trade deal by the end of the year.

Will the Relations Improve Further?

This news is great for US-India(BHARAT) trade relations, but the future of the relationship hinges on other factors. If the two countries can come to agreements on other topics such as oil and trade, the relationship could see further improvement.