US President Donald Trump has signed an executive order rescinding a 25% punitive duty on all imports from India, the White House announced on February 6. The move marks a significant de-escalation in trade tensions triggered by India’s high-volume procurement of Russian crude oil following the 2022 invasion of Ukraine.

The removal of the tariff comes as New Delhi begins a strategic shift away from Moscow’s energy exports. According to a report by Reuters, India’s intake of Russian oil is on a clear downward trajectory. After averaging approximately 1.2 million barrels per day (bpd) in January, imports are projected to decline to 1 million bpd in February and further drop to 800,000 bpd by March.

India, which relies on imports to meet roughly 90% of its domestic oil requirements, has significantly increased its purchases of discounted Russian grades over the past several years to mitigate rising energy costs. While these purchases helped lower India’s national import bill, they drew scrutiny from Washington and Western allies who enacted strict sanctions on Moscow’s energy sector.

The rescinding of the duties suggests a diplomatic pivot, rewarding India for its recent reduction in Russian energy dependence. Industry analysts view the move as an effort to strengthen bilateral trade ties with the world’s third-largest energy consumer while maintaining pressure on Russian oil revenues.

The White House statement emphasized that the executive order is effective immediately, providing relief to Indian exporters across various sectors who had been impacted by the broad 25% duty.