Greater Noida: The United States of America (USA) has removed 25 per cent tariff penalty on India for buying Russian energy. The US President Donald Trump signed an executive order on Saturday.
The White House said in a statement, “India has committed to stop directly or indirectly importing Russian oil, has represented that it will purchase energy from the US..I have determined that India has taken significant steps to..align sufficiently with the US.”
A new day! All credit to President Trump and Prime Minister Modi for their leadership and vision in achieving this. https://t.co/sehm0eLHSm
— Ambassador Sergio Gor (@USAmbIndia) February 7, 2026
Just after this announcement India and US have agreed on a ‘Trade Agreement’ that can affect India’s agriculture sector. However, Union Commerce Minister Piyush Goyal has claimed that this will open a $30 trillion market for Indian exporters, especially MSMEs, farmers and fishermen
Piyush Goyal further writes on X, “As part of this framework, the US will slash reciprocal tariffs on Indian goods to 18%, providing a huge market opportunity in key sectors such as textiles & apparel, leather & footwear, plastic & rubber products, organic chemicals, home décor, artisanal products, and select machinery in the world’s largest economy. ”
He further writes, “Additionally, 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. India will also get exemptions under section 232 on aircraft parts, tariff rate quota on auto parts and negotiated outcomes on generic pharmaceuticals, leading to tangible export gains in these sectors.”
“At the same time, 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. This agreement will help India and the US remain focused on working together to further deepen economic cooperation, reflecting shared commitment to sustainable growth for our people and businesses,” he added.
Prime Minister Narendra Modi calls it ‘Great news for India and USA!’ He writes on X, “This framework reflects the growing depth, trust and dynamism of our partnership. It strengthens ‘Make in India’ by opening new opportunities for India’s hardworking farmers, entrepreneurs, MSMEs, StartUp innovators, fishermen and more. It will generate large-scale employment for women and youngsters. ”
Great news for India and USA!
We have agreed on a framework for an Interim Trade Agreement between our two great nations. I thank President Trump for his personal commitment to robust ties between our countries.
This framework reflects the growing depth, trust and dynamism of… https://t.co/zs1ZLzamhd
— Narendra Modi (@narendramodi) February 7, 2026
