Executive order eliminates 25% tariffs on Indian imports following commitment to stop Russian oil purchases
Date of publication: February 10, 2026
On February 6, 2026, President Trump signed an executive order removing the 25% ad valorem tariff related to Russian oil purchases on imports from India, effective February 7, 2026. This action reverses tariffs imposed just six months earlier under Executive Order 14329 in August 2025.
Background: The Russian oil connection
The tariff removal stems from the ongoing national emergency declared in response to Russia's actions in Ukraine. Executive Order 14066 (March 2022) had prohibited imports of Russian crude oil and petroleum products into the United States as part of sanctions following Russia's invasion of Ukraine.
In August 2025, the administration determined that India's direct or indirect importation of Russian oil posed a threat to U.S. national security interests and imposed a blanket 25% tariff on all Indian goods under Executive Order 14329.
India's commitments lead to tariff relief
The new executive order cites three key commitments from India, as a result of the recent US-India Bilateral Trade Agreement (BTA), that justified eliminating the tariffs:
- Cessation of Russian oil imports: India committed to stop all direct and indirect purchases of Russian Federation oil.
- U.S. energy purchases: India represented it will purchase energy products from the United States.
- Defense cooperation: India recently committed to a framework expanding defense cooperation with the U.S. over the next 10 years.
The administration determined these actions demonstrate India has "taken significant steps to address the national emergency" and has aligned "sufficiently with the United States on national security, foreign policy, and economic matters."
Implementation details
Effective date
: February 7, 2026, at 12:01 a.m. EST.Tariff schedule changes
: The order terminates 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.Refunds
: Duties collected after the effective date will be refunded pursuant to standard CBP procedures.CBP has issued CSMS # 67702087 - UPDATED GUIDANCE – Modifying Additional Duties on Imports from India. This latest CSMS modifies CSMS # 66027027.
Monitoring and potential reimposition
The executive order includes a monitoring mechanism to ensure India's continued compliance. The Secretary of Commerce, coordinating with State and Treasury, will monitor whether India resumes Russian oil imports. If India is found to have resumed such imports, senior officials must recommend whether to reimpose the 25% tariff.
This conditional relief structure creates ongoing compliance obligations for India and leaves open the possibility of tariff reimposition if commitments are not maintained.
Trade compliance implications
For compliance professionals, this development requires:
- Immediate HTS review: Verify that Indian imports are no longer subject to the additional 25% duty as of February 7, 2026.
- Refund claims: Consider filing refund claims for duties paid on entries made on or after the effective date.
- Ongoing monitoring: Track whether India maintains its commitments, as tariffs could be reimposed.
- Documentation: Maintain records demonstrating country of origin for Indian goods.
The executive order demonstrates the administration's willingness to use tariffs as leverage for foreign policy objectives beyond traditional trade concerns, while also showing flexibility when countries align with U.S. strategic interests.
For more information on how ONESOURCE Global Trade solutions can assist you in managing supply chain risk and regulatory compliance as we move into 2026, contact your Account Manager or Client Success Manager.