Payam Javan: President Donald Trump announced the removal of a 25 percent punitive tariff on all imports from India, following an interim trade agreement that links tariff relief to New Delhi’s decision to halt purchases of Russian oil. The White House said the move represents a major step toward rebalancing trade relations between the two countries.

Under the deal, U.S. tariffs on Indian goods will be reduced to 18 percent from 50 percent in exchange for India ending its reliance on Russian crude and expanding market access for American products. India had been sourcing roughly one-third of its oil imports from Russia, though volumes declined earlier this year amid Western sanctions and shifting supply strategies.

The agreement, reached between Trump and Indian Prime Minister Narendra Modi, also includes commitments to strengthen supply chains and broaden bilateral trade. India will eliminate or lower tariffs on a wide range of U.S. industrial, agricultural, and food products, while the United States will lift certain national-security-related tariffs on Indian aircraft and aircraft parts.

As part of the long-term framework, India plans to purchase $500 billion worth of U.S. energy, aircraft, technology, precious metals, and coal over the next five years. Both leaders described the deal as a milestone that will deepen economic ties and reinforce the strategic partnership between the world’s two largest democracies.