Washington D.C. – The US tariff removal India process has officially commenced as the US Customs and Border Protection on Tuesday notified the elimination of the 25 percent additional tariffs on Indian goods. This significant development follows days after India and the United States announced a historic trade deal that promises to reshape bilateral economic relations.
Official Customs Notification on US Tariff Removal India
The US tariff removal India announcement came through an official notification from the Customs and Border Protection department, which confirmed that duties would be removed for products from India which enter for consumption or are withdrawn from warehouse on or after February 7. This marks a concrete step in implementing the trade agreement between the two nations.
Referring to a White House statement, the Customs department formalized the US tariff removal India directive, providing clarity to importers and exporters about the new tariff regime. The notification came after US President Donald Trump signed an executive order on Friday last week, officially sanctioning the US tariff removal India measure.
Background of the 25% Tariff Penalty
The US tariff removal India development effectively ends a penalty that was imposed in August 2025. The 25 percent tariff had been levied on Indian goods over the alleged purchase of Russian oil, creating significant tension in bilateral trade relations and affecting various sectors of Indian exports to the United States.
This punitive measure had placed Indian exporters at a competitive disadvantage and threatened to derail the growing economic partnership between the two democracies. The US tariff removal India action therefore represents not just an economic relief but also a diplomatic breakthrough.
Details of the Customs Department Release
The Customs and Border Protection document provided specific details about the US tariff removal India implementation. The updated guidance modifying the additional duties on imports from India stated: “Products of India entered for consumption or withdrawn from warehouse for consumption on or after 12:01 a.m. eastern time on February 7, 2026, are no longer subject to the additional ad valorem duty rate of 25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.”
The notification specifically referenced the executive order titled “Addressing Threats to the United States by the Government of the Russian Federation” signed on August 6, 2025. As a result of the US tariff removal India directive, 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.
Reciprocal Tariffs Still in Effect
While celebrating the US tariff removal India achievement, it’s important to note that the Customs and Border Protection document clarified that reciprocal tariffs remain in place. The notification stated that “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 that do not qualify for an exemption.”
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This means that while the US tariff removal India has eliminated the additional 25% penalty, other tariff structures continue to apply to Indian goods based on reciprocal trade considerations.
Broader Trade Deal Framework
The US tariff removal India action is part of a comprehensive trade agreement announced by President Trump and Prime Minister Narendra Modi. The deal would see overall tariffs on India reduced from 50% to 18%, representing a substantial improvement in market access for Indian products.
India and the United States finalized the framework for an interim trade deal last week, which included not just the US tariff removal India component but also broader tariff reductions on both sides. Under the agreement, India will also be removing and reducing tariffs on US industrial, food and agricultural goods.
Energy and Defense Commitments
In his executive order facilitating the US tariff removal India, Trump repeated claims that India would stop purchasing Russian oil and increase energy purchases from the United States. The order further stated that India had “recently committed to a framework with the United States to expand defense cooperation over the next 10 years.”
However, while India has not officially confirmed a complete halt to Russian energy purchases, New Delhi has signaled openness to increasing energy purchases from the United States and Venezuela, suggesting a diversification strategy rather than complete abandonment of Russian supplies.
Future Implementation Timeline
While there has been no specified timeline, once the interim framework is fully implemented following the US tariff removal India measure, the United States is also expected to end reciprocal tariffs on specific Indian goods. These include medicines, gemstones and diamonds, and aircraft parts—sectors that are particularly important for Indian exports.
Significance for Indian Exporters
The US tariff removal India notification provides immediate relief to Indian businesses that have been operating under the burden of additional duties. Products entering US ports on or after February 7 can now benefit from the elimination of the 25% penalty, improving their competitiveness in the American market.
Moving Forward
The US tariff removal India represents a crucial first step in implementing the broader trade agreement between the two nations. As both countries work toward finalizing the complete interim deal and eventually a comprehensive bilateral trade agreement, this Customs notification demonstrates tangible progress in translating diplomatic announcements into concrete economic benefits.
The successful implementation of the US tariff removal India measure sets a positive precedent for future negotiations and suggests that both nations are committed to strengthening their economic partnership despite ongoing complexities around issues like energy sourcing and reciprocal market access.
