The Trump Administration released two Executive Orders on February 6 modifying Russian oil-related duties on goods from India and authorizing new tariffs on countries that buy goods and services from Iran.

Executive Order modifying Indian duties related to purchases of Russian oil

On February 2, the President Trump announced that the United States had reached a deal with India that would lower tariffs from 50% to 18% on most Indian products.

On February 6, the White House released the U.S.-India Joint Statement, which confirmed the U.S. would lower the 25% country specific tariff rate on imports from India enacted by President Trump's July 31 Executive Order, Further Modifying the Reciprocal Tariff Rates. We are still awaiting official action to implement this tariff reduction.

In addition, on February 6 the White House issued an Executive Order, Modifying Duties to Address Threats to the U.S. by the Government of the Russian Federation, lifting the Russian oil-related duties of 25% on imports from India. These secondary tariffs were imposed last August in response to India's purchases of Russian oil amidst the ongoing Russia-Ukraine conflict. According to the Executive Order, "India has committed to stop directly or indirectly importing Russian Federal oil, has represented that it will purchase United States energy products from the United States, and has recently committed to a framework with the United States to expand defense cooperation over the next 10 years." CBP issued guidance for importers, CSMS # 67702087 - UPDATED GUIDANCE - Modifying Additional Duties on Imports from India, linked here.

As part of the trade deal, the U.S. committed to duty-free treatment for certain goods from India, including aircraft parts, generic pharmaceuticals, gems, and diamonds. The U.S. also said it would provide "a preferential tariff rate quota for automotive parts" from India and that if section 232 tariffs are imposed on pharmaceuticals and pharmaceutical ingredients, India will receive "negotiated outcomes with respect to generic pharmaceutical and ingredients." For its part, India has committed to reduce tariffs on a wide range of U.S. goods, including industrial goods as well as food and agricultural products.

Executive order authorizing tariffs on countries that trade with Iran

On February 6, the White House issued an Executive Order on Addressing Threats to the U.S. by the Government of Iran. Citing the International Emergency Economic Powers Act (IEEPA), the order says an additional ad valorem duty rate, "may be imposed on goods imported into the U.S. that are products of any country that directly or indirectly purchases, imports, or otherwise acquires any goods or services from Iran." The order requires the Commerce Secretary to determine whether a country is conducting business with Iran and then other officials including the Secretary of State should determine "whether and to what extent an additional ad valorem" tariff should be levied. In an accompanying Fact Sheet issued February 6, the White House said it was "holding Iran accountable for its pursuit of nuclear capabilities, support for terrorism, ballistic missile development, and regional destabilization that endanger American security, allies, and interests."