The United States has withdrawn the additional 25 percent tariff imposed on Indian goods over India’s purchase of Russian oil, as part of a newly announced bilateral trade agreement between the two countries. The decision was formalized through an executive order signed by US President Donald Trump, which stated that India had pledged to halt direct or indirect imports of oil from Russia. The order also mentioned that New Delhi had committed to purchasing US energy products and to preparing a framework for expanding defense cooperation with Washington over the next ten years. According to the announcement, the withdrawal of the extra 25 percent tariff will take effect from 12:01 am local time on Saturday. The executive order came just days after Trump announced a trade deal to reduce tariffs on Indian products, claiming that Indian Prime Minister Narendra Modi had promised to stop buying Russian oil in the context of the Ukraine war. Under the new agreement, the United States will also lower retaliatory tariffs on Indian goods from 25 percent to 18 percent, though the reduction will be implemented gradually. The White House also said that tariffs on certain aircraft and aircraft parts for India would be removed. As part of the broader trade arrangement, India plans to import around 500 billion dollars’ worth of energy, aircraft, technology products, precious metals, and coal from the United States over the next five years. Late last year, US tariffs on Indian goods had reached as high as 50 percent, but the current decision significantly reduces that burden. The agreement is also expected to ease the diplomatic tensions that had persisted for months between the two countries over India’s purchase of Russian oil. At the same time, the move is seen as strengthening the personal and political relationship between Trump and Modi, with Trump having described the Indian prime minister as one of his closest friends. Analysts believe that with an 18 percent tariff rate, Indian exporters will gain a competitive advantage over other South Asian countries, many of which face tariff rates between 19 and 20 percent when exporting goods to the United States.