U.S. President Donald Trump announced the cancellation of an additional 25% tariff imposed on Indian goods, effective February 7, as part of efforts to realign trade relations following India’s pledge to curb imports of Russian oil. This decision emerged from a larger strategy by the Trump administration aimed at pressuring Moscow by targeting significant buyers of Russian energy, particularly in light of Russia's ongoing war in Ukraine. The White House document indicates that India has agreed to halt both direct and indirect imports of Russian oil and has shown interest in purchasing U.S. energy products.

The tariff was originally introduced in response to India's purchasing patterns of Russian crude oil, which had been significantly impacted by Western sanctions against Russia. In recent months, India, along with China, has become one of the largest importers of Russian crude, thereby generating considerable revenue for Russia, which fuels its military actions in Ukraine. The U.S. saw this move as vital to halting the flow of funds that could support Russia's war efforts.

Additionally, the cancellation of tariffs coincides with the signing of a significant 10-year framework agreement between India and the U.S. aimed at expanding defense cooperation. This change is indicative of a broader shift in geopolitics, where the U.S. seeks to strengthen ties with India amidst growing tensions with China and the ongoing conflict in Ukraine, while providing incentives for India to align with U.S. energy and defense policies.