U.S. to remove additional 25% duty on Indian goods from February 7

February 7, 2026 at 04:08 AM
By The Hindu
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U.S. to remove additional 25% duty on Indian goods from February 7

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According to an executive order issued by the White House, India has also committed to a framework with the U.S. to expand defence cooperation over the next 10 years

Analysis & Context

**U.S. Lifts Tariffs on Indian Goods, Signaling Deeper Strategic Alignment** In a significant move poised to reshape bilateral trade and strategic ties, the United States has announced the removal of an additional 25% duty on certain Indian goods, effective February 7. This decision, formalized by a White House executive order, marks a pivotal moment in the U.S.-India relationship, simultaneously revealing a commitment from New Delhi to expand defense cooperation with Washington over the next decade. The tariff removal addresses a long-standing point of contention, stemming from duties imposed under the previous U.S. administration. While the specific goods affected by this removal are yet to be fully detailed, the action is widely seen as a gesture of goodwill and an effort to reset trade relations that have faced headwinds in recent years. For Indian exporters, particularly in sectors previously impacted by these tariffs, the move offers a welcome boost, potentially increasing competitiveness and market access in the lucrative U.S. market. It underscores a broader U.S. strategy to strengthen economic partnerships with key allies, particularly those seen as vital to countering China's growing global influence. Beyond commerce, the executive order highlights a parallel commitment from India to a robust framework for defense cooperation with the U.S. This ten-year plan signifies a deepening of strategic alignment, likely encompassing joint exercises, technology transfers, and enhanced intelligence sharing. Such collaboration is crucial for both nations, with the U.S. seeking to bolster its Indo-Pacific strategy and India aiming to modernize its military capabilities and diversify its defense procurement, reducing reliance on traditional suppliers. Analysts suggest this dual announcement reflects a comprehensive U.S. approach: using economic incentives to foster closer strategic ties. By addressing trade grievances and simultaneously solidifying defense commitments, Washington is effectively building a stronger, more resilient partnership with India, a critical player in the evolving geopolitical landscape of the Indo-Pacific. This development could pave the way for further collaboration across various sectors, from technology and clean energy to critical minerals, cementing India's role as a cornerstone of U.S. foreign policy in Asia.

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According to an executive order issued by the White House, India has also committed to a framework with the U.S. to expand defence cooperation over the next 10 years

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