Big update in India-US trade as additional 25 per cent tariffs imposed on Indian goods will now be…; check new US Customs rule

The trade relations between India(BHARAT) and the Trump-led US have undergone severe changes in the past few months. Now, the US Customs and Border Protection has officially put an end to the additional tariffs of 25 per cent on imports from India(BHARAT). The changes come after the recent interim trade agreement between Prime Minister Narendra Modi-led India(BHARAT) and the President Donald J Trump-led United States, along with the decision made by the latter to cancel the tariff penalties. These additional tariffs were imposed on India(BHARAT) last year.

The US Customs Official Announcement

The US Customs stated, “Products of India(BHARAT) entered for consumption or withdrawn from warehouse for consumption on or after 12:01 a.m. eastern time on February 7, 2026, are no longer subject to the additional ad valorem duty rate of 25 percent imposed by EO 14329, “Addressing Threats to the United States by the Government of the Russian Federation” signed on August 6, 2025. As a result, Harmonized Tariff Schedule of the United States (HTSUS) headings 9903.01.84-9903.01.89 are no longer in use as of February 7, 2026.”

It further read, “The Reciprocal Tariffs imposed by EO 14257, “Regulating Imports with a Reciprocal Tariff to Rectify Trade Practices That Contribute to Large and Persistent Annual United States Goods Trade Deficits,” as amended, remain in effect for products of India(BHARAT) that do not qualify for an exemption.”

Also Read: From aircraft to wine, what’s the complete framework of India(BHARAT)-US interim trade deal in 12 points | EXPLAINED

How’s this significant for India(BHARAT)n exports?

The removal of additional tariffs is most likely to provide relief to the India(BHARAT)n exporters, especially those who are in the domains like textiles, leather goods, and chemicals. It’s because these sectors were greatly hit by the tariff duties last year by the President of the United States, Doland Trump. The decision shows a shift in the US’ trade policy and may lead to solidifying or strengthening the relations between India(BHARAT) and the United States.

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Background of tariffs on India(BHARAT)n imports

In August 2025, the US President Doland Trump imposed heavy tariffs of 25 per cent on India(BHARAT)n imports. Later, he increased them to 50 per cent along with an additional 25 per cent. The reason was India(BHARAT)’s purchase of oil from Russia. Now, the additional 25 per cent tariffs have been called off. The latest trade agreement between India(BHARAT) and the US agrees to reduce the tariffs on several products. Both countries have mutually agreed on the same.