US Lifts Russia-Linked Tariff as India Agrees to Shift Oil Imports

Washington, Feb 2026 : The United States has announced the removal of a 25 per cent tariff imposed on Indian goods that was linked to India’s purchase of Russian oil, following a new understanding reached between US President Donald Trump and Prime Minister Narendra Modi. The move marks a significant reset in bilateral trade and energy relations between the two countries.

Under the agreement, India has committed to ceasing imports of Russian oil and substantially increasing its purchases from the United States. President Trump described the decision as a major shift in India’s energy strategy, aimed at deepening US–India cooperation while reducing Russia’s oil revenues amid the ongoing conflict in Ukraine. He said the agreement reflects growing trust and strategic alignment between the two democracies.

Prime Minister Modi welcomed the tariff reduction, noting that it would directly benefit Indian exporters and strengthen economic ties. He подчеркed that cooperation between the world’s largest democracies creates opportunities for shared growth and stability, and said the agreement demonstrates how trade can serve broader strategic and global objectives.

The lifting of the tariff is seen as part of a wider effort to rebalance trade relations and expand energy collaboration, which has grown rapidly over the past decade. The United States has emerged as a key energy partner for India, supplying crude oil, LNG and other energy resources, while India remains one of the fastest-growing energy markets in the world.

Analysts say the agreement will be closely watched by Indian policymakers as well as global energy markets, as it could influence pricing dynamics, supply chains and long-term energy security strategies. The move is also expected to provide Indian exporters with a competitive edge by easing cost pressures in the US market.

Adding momentum to the evolving partnership, External Affairs Minister S. Jaishankar is scheduled to visit Washington soon for high-level discussions on strategic cooperation, including critical minerals, clean energy technologies and long-term energy security. The visit is expected to further solidify the expanding strategic and economic partnership between India and the United States.