U.S. President Donald Trump has signed an executive order removing the 25 percent punitive tariff previously imposed on Indian goods. The order, which takes effect on February 7, was originally introduced as a penalty for India’s purchase of Russian oil, according to the report. The decision follows recent announcements by Trump and Indian Prime Minister Narendra Modi that Washington and New Delhi have reached a new trade agreement.

Under the new trade arrangement, tariffs on Indian goods are expected to drop from 50 percent to 18 percent. The executive order also reiterates Trump’s demand that India stop buying oil from Russia and increase its energy imports from the United States. Additionally, it outlines plans for the two countries to expand defense cooperation over the next decade.

India has not confirmed Trump’s claim that it will halt Russian energy purchases. Previously, New Delhi defended its decision to buy Russian oil, describing it as a matter of national interest.