Washington, 07 February (H.S.): US President Donald Trump signed an executive order on Friday rescinding a 25 percent tariff on Indian goods, imposed last year over India's discounted Russian oil purchases, thereby enacting a pivotal trade accord announced earlier this week that promises to bolster bilateral commerce and defense collaboration.

The directive stipulates the tariff's elimination effective 12:01 a.m. ET on Saturday, February 7, fulfilling India's pledge to cease all direct and indirect Russian crude imports—a concession extracted amid Washington's campaign to starve Moscow's Ukraine war chest. Trump hailed Prime Minister Narendra Modi, whom he deems one of my greatest friends, for honoring commitments to procure $500 billion in American energy products, aircraft, parts, precious metals, technology, and coking coal across the next five years.

Complementing this, the White House unveiled tariff reductions on select US aircraft and components, alongside slashing reciprocal duties on Indian exports to 18 percent from 25 percent—a further drop from late-2025's 50 percent peak. India reciprocates with a decade-long defense framework expansion, thawing months of friction over oil flows that fueled US ire.

Strategic Pivot Restores Modi-Trump Bromance

Asia Society Policy Institute Vice President Wendy Cutler noted the 18 percent rate affords Indian exporters a competitive sliver over regional rivals facing 19-20 percent levies. This détente not only eases exporter burdens but recalibrates Indo-US ties, prioritizing energy diversification and military interoperability against shared geopolitical pressures.

The pact underscores Trump's deal-making diplomacy, leveraging sanctions threats to pivot India from Russian dependence toward American suppliers, while cementing Modi's access to advanced defense wares.

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Hindusthan Samachar / Jun Sarkar