U.S. - India Interim Trade Agreement & Russian Oil Tariff Reduction Update

On February 2, 2026, the U.S. and India reached a framework for an Interim Agreement on trade.  The framework focuses on reciprocal and balanced trade, expanded market access, and strengthened supply-chain cooperation.  A formal implementation date has not yet been announced.

Key Outcomes of U.S. – India Joint Statement 

Tariff Reductions and Eliminations 

• India will reduce or eliminate tariffs on all U.S. industrial and many agricultural goods. 
• The U.S. will apply an 18% reciprocal tariff on certain Indian-origin goods once the Interim Agreement is finalized. 
• The U.S. will also remove security-driven tariffs on Indian aircraft and parts. India will receive a tariff-rate quota for automotive parts. 

White House Executive Order & CBP Guidance 

Following progress on the Interim Agreement with India, the White House issued an Executive Order on February 6,2026, titled “Modifying Duties to Address Threats to the United States by the Government of the Russian Federation”. 

U.S. Customs and Border Protection (CBP) subsequently released updated instructions in CSMS #67702087, clarifying the impact of the Executive Order on duty obligations. 

Key CBP Updates 

1. Removal of Additional Duties 

Products of India entered for consumption or withdrawn from warehouse for consumption on or after 12:01 a.m. EST on February 7, 2026, are no longer subject to the additional 25% duty on Russian oil previously imposed under Executive Order 14329. 

2. Invalidated HTSUS Headings 

Effective February 7, 2026, the following HTSUS subheadings are no longer valid: 

• 9903.01.84-9903.01.89 

3. Reciprocal Tariff Still Applies 

The reciprocal tariff remains in effect for products of India that do not qualify for an exemption.

The rate is currently 25%, which will be reduced to 18% once the U.S. -India Interim Agreement enters into force. 

4. Correcting Previous Entries  

Importers seeking refunds should submit a Post Summary Correction (PSC) if the original entry cannot be amended. 

For additional information, please refer to the supporting resources provided below. 

Resources:

• United States-India Joint Statement – The White House 
• Modifying Duties to Address Threats to the United States by the Government of the Russian Federation – The White House 
• Federal Register: Addressing Threats to the United States by the Government of the Russian Federation 
• CSMS # 67702087 - UPDATED GUIDANCE – Modifying Additional Duties on Imports from India