US President Donald Trump on Friday lifted the additional 25% tariff he imposed on goods from India over its purchase of Russian oil. He signed an executive order which said that “India has committed to stop directly or indirectly importing Russian Federation oil”.
The extra tariff, introduced over India’s purchases of Russian oil, will be withdrawn at 12:01 am Eastern Time on Saturday, according to the executive order signed by Trump.
It also noted that New Delhi has agreed to increase purchases of American energy products and strengthen long-term security ties with Washington. India, the order said, “has recently committed to a framework with the United States to expand defense cooperation over the next 10 years.”
Trade Deal Follows Trump–Modi Talks
The executive action comes days after Trump announced a broader trade deal aimed at easing tariffs on Indian exports. At the time, he said Prime Minister Narendra Modi had pledged to halt Russian oil imports amid the ongoing war in Ukraine.
Under the agreement, the US plans to lower so-called “reciprocal” tariffs on Indian goods to 18 percent from the earlier level of 25 percent. However, officials said the timeline for rolling out the reduced rate is still pending.
Aircraft, Energy Purchases Part Of Agreement
A separate joint statement issued by the White House on Friday said the deal also includes the removal of tariffs on select aircraft and aircraft parts.
The statement added that India intends to purchase $500 billion worth of US energy products, aircraft and parts, precious metals, technology products, and coking coal over the next five years.
The agreement represents a sharp reduction in US duties on Indian goods, which had stood at 50 percent late last year.
The easing of tariffs follows months of strain between the two countries over India’s Russian oil imports, which Washington has argued indirectly support a conflict it is seeking to bring to an end.
The deal also signals a revival of close ties between Trump and Modi, a relationship the US president has described as “one of my greatest friends.”
According to Wendy Cutler, senior vice president at the Asia Society Policy Institute, the revised 18 percent tariff rate gives Indian exporters a modest competitive advantage in the US market over regional rivals facing duties of around 19 to 20 percent, AFP reported.