President Donald Trump signed an executive order removing the 25% Russia-related tariff on Indian goods, effective February 7. The shift marks a major pivot in U.S.-India trade relations and aims to reduce India's reliance on Russian oil.

In exchange, India has pledged to buy $500 billion in U.S. energy, aircraft, and tech products over five years. New Delhi also committed to expanded defense cooperation with Washington, signaling a strategic realignment away from Moscow.

The U.S. will impose an 18% reciprocal tariff on certain Indian exports like textiles and chemicals. However, duties on key sectors such as generic pharmaceuticals, gems, and aircraft parts have been lifted. American agricultural exporters stand to gain from reduced Indian import barriers.

Both nations plan to dismantle long-standing non-tariff barriers affecting U.S. medical device and ICT firms. Officials described the interim deal as a milestone toward a broader Bilateral Trade Agreement that would reshape economic and security ties permanently.