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New Delhi/Washington, February 7, 2026 : In a significant development in India–U.S. relations, President Donald Trump has signed an executive order conditionally lifting the 25% punitive tariff on Indian imports. The waiver, effective from Saturday, follows New Delhi’s commitment to cease direct and indirect imports of Russian oil and to expand cooperation with Washington in energy and defence over the next decade. Under the interim trade framework announced this week, U.S. tariffs on Indian goods will be reduced to 18%, while India has pledged to increase purchases of American energy products.
The decision marks a departure from the heightened trade tensions of 2025, when tariffs were escalated in response to India’s energy ties with Moscow. Both governments have indicated that the interim framework is a precursor to a broader trade pact, expected to be formalised in March, aimed at lowering barriers and reshaping bilateral economic ties.
The move has triggered sharp criticism from opposition parties in India. Congress leader Jairam Ramesh questioned the transparency of the agreement, arguing that Parliament has not been provided with full details. He warned that the deal could expose Indian markets to subsidised American agricultural imports and undermine protections for domestic producers. Other opposition voices echoed these concerns, cautioning that the framework may disproportionately favour U.S. interests and erode India’s strategic autonomy.
The government has defended the agreement as a strategic step to boost growth and strengthen bilateral cooperation. Officials argue that tariff reductions will enhance market access for Indian exporters and create new opportunities across sectors. Both sides have signalled their intent to finalise the full text of the pact in the coming weeks, setting the stage for what they describe as a new phase in India–U.S. trade relations.
