TNI Bureau: US President Donald Trump has signed an executive order removing the 25 percent tariff on Indian goods linked to India’s purchase of Russian oil, as part of a preliminary trade deal between the two countries.

In the executive order, the president said he was now removing the Russian oil-related duty, effective Saturday, because “India has committed to stop directly or indirectly importing Russian Federation oil,” has promised to purchase U.S. energy products and recently committed to a framework to expand defense cooperation with the United States over the next 10 years.

Under the agreement, the US will reduce its overall tariff on Indian goods from 50 percent to 18 percent by lifting the Russia-related duty and lowering reciprocal tariffs.

In return, India will eliminate or reduce tariffs on all US industrial goods and a wide range of agricultural products, including animal feed, fruits, nuts, soybean oil, wine, and spirits.

The US will also remove tariffs on certain aircraft and aircraft parts, offer preferential tariff treatment for auto parts, and provide negotiated outcomes on generic pharmaceuticals. India has pledged to buy $500 billion worth of US energy, aircraft, technology products, and coking coal over the next five years.

Both countries will continue talks on a broader bilateral trade agreement.