United States President Donald Trump on Saturday signed an executive order, removing the 25 per cent tariffs he imposed on India for purchasing Russian oil. The US lifted the punitive tariff, citing that New Delhi has undertaken "significant steps" and has committed to stop "directly or indirectly" importing oil from Moscow.

In his executive order, Trump said, "I have received additional information and recommendations from senior officials regarding India's efforts to address the national emergency described in Executive Order 14066. Specifically, India has committed to stop directly or indirectly importing Russian Federation oil, has represented that it will purchase energy products from the United States, and has recently committed to a framework with the United States to expand defence cooperation over the next 10 years."

Trump said that he is determined that "India has taken significant steps to address the national emergency described in Executive Order 14066 and to align sufficiently with the United States on national security, foreign policy, and economic matters. Accordingly, I have determined to eliminate the additional ad valorem rate of duty imposed on imports of articles of India."

The United States imposed a 25 per cent reciprocal tariff on Indian goods in August last year. Besides, an additional punitive tariff of 25 per cent was levied on Indian goods for its purchase of Russian crude oil.

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In recent months, India's import of Russian oil has significantly reduced as New Delhi says it is diversifying its sources. Earlier, on Trump's claim that India will consider buying oil from Venezuela instead, MEA clarified it has been buying crude from the South American country, with only halts because of sanctions. 

Moreover, India and the US have also finalised a framework for a trade agreement and have issued a joint statement, listing various aspects of the upcoming trade deal. The joint statement mentions Washington will consider reducing further tariffs on Indian goods as the talks continue.

Reacting to the joint declaration, Minister of Commerce and Industry Piyush Goyal said that the deal will open a $30 trillion market for Indian exporters. Goyal emphasised, "Tariffs will go down to zero on a wide range of goods, including generic pharmaceuticals, gems & diamonds, and aircraft parts, thereby further enhancing India’s export competitiveness and Make in India."

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On farmers' issue, he said, "The Agreement reflects India’s commitment to safeguarding farmers’ interests and sustaining rural livelihoods by completely protecting sensitive agricultural and dairy products, including maize, wheat, rice, soya, poultry, milk, cheese, ethanol(fuel), tobacco, certain vegetables, meat, etc."