US tariff relief: India exporters get boost as Trump eases threat of 100% duties over Russian oil purchases

New Delhi: The United States has decided to waive the Russia-linked sanctions on major buyers of Russian-origin oil and gas. The move is expected to provide significant relief to Indian exporters.

The removal of tariffs would boost business confidence and build on the momentum in bilateral trade.

As per a report by Times Kuwait, the Executive Order recently signed by President Donald Trump could boost bilateral trade momentum, support employment and advance the $500 billion India-US bilateral trade ambition by 2030.

The order eased the immediate threat of additional tariffs of up to 100 per cent on Indian exports linked to Russian energy purchases, reducing uncertainty for businesses.

Long-term trade relationships, competitive prices and reliable delivery dates play an important role in exports of engineering goods and industrial machinery. The waiver has provided businesses with enough room for contract negotiations, shipment planning and investment-related decision-making.

Even though the tariff waiver would not remove all the obstacles, it would substantially address concerns among US importers, who can now assess options among Indian suppliers. India and the US no longer face the immediate concern of successive policy uncertainties; rather, they can work towards expanding commercial opportunities.

"Although the waiver does not eliminate every tariff-related challenge, it reduces the risk of further escalation in trade tensions and provides an opportunity to rebuild momentum in one of India’s most important export markets," the report noted.

The United States remains India’s largest destination for merchandise exports, comprising manufacturing, pharmaceuticals, engineering, electronics and labour-intensive goods.

India’s merchandise exports to the US rose from about $86.5 billion in FY25 to $87.3 billion in FY26, up about 0.9 per cent despite tariff measures during the year.

Exports in September 2026 rose to $8.02 billion, up 48 per cent from $5.42 billion in September 2025.

“Greater coordination on energy, manufacturing, technology, investment and supply chains can help both countries identify shared interests and reduce the risk of future disruptions,” the report noted.

(With inputs from IANS)