US President Donald Trump has moved to remove an additional 25 percent tariff imposed on Indian goods following a trade agreement between the two countries, according to an executive order signed on Friday.

The extra duty, which had been levied over India’s purchases of Russian oil, will be lifted at 12:01 am Eastern Time on Saturday. The order states that India has committed to stopping the direct or indirect import of oil from the Russian Federation.

The decision comes days after Trump announced a broader trade deal with India, saying Prime Minister Narendra Modi had assured Washington that New Delhi would halt Russian oil purchases amid the ongoing Ukraine war.

As part of the agreement, India has also committed to buying energy products from the United States. The executive order further noted that New Delhi has recently agreed to a framework aimed at expanding defence cooperation between the two countries over the next decade.

Tariff reduction still to be rolled out

While the additional 25 percent tariff is being removed immediately, the wider reduction in so-called reciprocal tariffs is yet to be implemented. Under the agreement, US duties on Indian products are expected to be reduced to 18 percent from the earlier level of 25 percent.

Other provisions of the deal include the removal of tariffs on certain aircraft and aircraft parts. A separate joint statement released by the White House said India intends to purchase goods worth $500 billion from the United States over the next five years. These purchases are expected to include energy products, aircraft and parts, precious metals, technology products and coking coal.

The move marks a sharp decline in US tariff levels on Indian goods, which had stood at as high as 50 percent late last year. The agreement also helps ease months of strain between the two countries over India’s oil imports, which Washington has argued help finance the conflict in Ukraine.

The deal signals a reset in ties between Trump and Prime Minister Modi, whom the US President has previously described as one of his closest friends.

Trade experts have noted that the proposed 18 percent tariff rate could offer Indian exporters a slight advantage in the US market compared to regional competitors facing duties of around 19 to 20 percent.

As India and the United States move closer to finalising a major bilateral trade agreement, the Centre has sought to reassure farmers that their interests remain fully protected. Senior ministers on Wednesday said the proposed pact does not compromise sensitive sectors such as agriculture and dairy, while opening new avenues for Indian exports.

Union Minister for Agriculture and Farmers’ Welfare Shivraj Singh Chouhan dismissed opposition allegations that the deal could adversely affect domestic farmers. Speaking to the media in New Delhi, he said the agreement poses no risk to staple food grains, millets, fruits or dairy products.

“Farmers’ interests are paramount and non-negotiable,” Chouhan said, asserting that the government has ensured no provision allows sudden or disruptive entry of foreign agricultural products into Indian markets. He added that safeguards for both small and large farmers remain firmly in place.

Chouhan underlined that key agricultural commodities continue to be protected and that existing measures shielding Indian farmers from unfair competition will remain unchanged. According to him, the agreement has been shaped under the leadership of Prime Minister Narendra Modi, with a clear focus on development and national interest.

Addressing concerns sparked by a recent social media post from a US official regarding greater access for American farm products, the Agriculture Minister said the matter had already been clarified in Parliament by Commerce Minister Piyush Goyal. He reiterated that India has not opened its markets in a way that would put pressure on domestic producers.

At the same time, the government highlighted potential gains for Indian exports. Reduced tariffs under the agreement are expected to benefit sectors such as rice, spices and textiles. Chouhan pointed out that India already exports rice to multiple countries, including the US, with shipments valued at around Rs 63,000 crore. Increased textile exports, he added, would directly support cotton-growing farmers and allied industries.

External Affairs Minister S Jaishankar also indicated that the trade agreement is now in its final stages. In a post on X following his visit to the United States, he described the negotiations as productive and said the deal would mark a new phase in bilateral relations. He noted progress in areas such as critical minerals, while signalling deeper engagement in defence, energy and strategic cooperation.

Officials view the agreement as part of a broader effort to strengthen India-US economic and strategic ties amid global uncertainty. While detailed provisions are yet to be made public, the Centre has reiterated that farmer welfare remains at the heart of the negotiations.

In an emotional appeal, Chouhan referred to farmers as the nation’s “Annadata” and said serving them was equivalent to worship. He assured that the government would continue to stand firmly with farmers as India charts a new course in its trade relationship with the United States.

AAP leader Lucky Oberoi was shot dead in a broad daylight attack in Punjab’s Jalandhar on Friday after unidentified assailants opened fire at him near a gurdwara in the city.

According to initial information, Oberoi was inside his car near the Gurdwara Sahib in the Model Town area when attackers arrived on a two-wheeler and fired multiple rounds at him. Five bullets reportedly hit him during the attack.

He was rushed to a private hospital immediately after the shooting, but doctors declared him dead due to the severity of his injuries.

Attack near gurdwara, police launch investigation

As per preliminary details, Oberoi was parking his vehicle outside the gurdwara when the attackers struck. The shooting triggered panic in the area, prompting an immediate response from the local police.

A police team reached the spot soon after receiving information and has launched an investigation into the incident. Efforts are underway to identify the attackers and determine the motive behind the killing.

Political reactions after killing

Following the incident, Leader of Opposition in the Punjab Legislative Assembly, Partap Singh Bajwa, strongly criticised the state government, alleging a collapse of law and order in Punjab.

In a post on X, Bajwa said the daylight killing of an AAP leader outside a gurdwara reflected the deteriorating security situation in the state. He questioned the government’s ability to protect citizens, claiming that fear and gang violence were gripping Punjab under the current administration.

Background

Lucky Oberoi was associated with the Aam Aadmi Party in Punjab. His wife had earlier contested municipal elections as an AAP candidate but did not win.