U.S. President Donald Trump issued an executive order following through on a trade deal with India he announced in early February, reducing U.S. tariffs on the country to 18 percent.
Trump first announced the new trade deal with India on 2 February, which he said came after a discussion with India Prime Minister Narendra Modi. Just four days later on 6 February, he formalized the deal with an executive order, cutting reciprocal tariffs on the country to 18 percent from the previous 25 percent and eliminating a separate 25 percent ad valorem tariff implemented in August 2025 against India over its purchases of Russian oil.
The executive order also states that if necessary, U.S. Customs and Border Protection will be issuing refunds of the ad valorem tariff as needed.
India and the U.S. released a joint statement covering other aspects of the trade deal, which said India will eliminate or reduce tariffs on all U.S. industrial goods and a range of U.S. food and agriculture products. It also said India “intends to purchase” USD 500 billion (EUR 420 billion) in U.S. energy products, aircraft and aircraft parts, precious metals, technology products, and coking coal over the next five years.
“The Interim Agreement between the United States and India will represent a historic milestone in our countries’ partnership, demonstrating a common commitment to reciprocal and balanced trade based on mutual interests and concrete outcomes,” the joint statement said.
India is a top source of shrimp for the U.S., and the 50 percent tariff was one factor in shrimp imports declining in the latter half of 2025, with India’s exports to the U.S. declining massively.
While India will no longer be subject to the 50 percent tariff, its shrimp industry will still need to contend with the 18 percent reciprocal tariff, as well as both antidumping and countervailing duties imposed by the U.S. Department of Commerce.
