Khaberni - On Friday, U.S. President Donald Trump took the decision to cancel an additional 25% tariff that he had previously imposed on Indian goods because of New Delhi's ongoing purchase of Russian oil, coinciding with the implementation of a trade agreement reached between the two parties this week.
According to an executive order signed by Trump, "India has committed to cease importing Russian oil, whether directly or indirectly".
New Delhi also announced its intention to purchase American energy products and its commitment "to a framework with the United States to expand defense cooperation over the next ten years," according to the executive order.
The additional U.S. tariffs of 25% will be lifted at exactly 12:01 AM Eastern Time Saturday.
This decision comes days after Trump announced a trade agreement with India which stipulates a reduction of tariffs on Indian goods in exchange for Prime Minister Narendra Modi's commitment to stop purchasing Russian oil because of the war in Ukraine.
The agreement also stipulates that Washington will reduce what is called "mutual" tariffs on Indian products to 18%, down from 25%.
A joint statement issued by the White House added that India plans to purchase energy products, aircraft, precious metals, technology products, and coal from the United States valued at $500 billion over the next five years.
This agreement eases the tension that has persisted for months between Washington and New Delhi over the purchase of Russian oil, which Trump considers to be funding a conflict he seeks to end.
The agreement also restores the close relationship between Trump and Modi, a right-wing populist leader whom the U.S. President once described as "one of my dearest friends".
