US President Donald Trump announced a new trade deal with India on Monday, stating he has reduced tariffs on Indian products and claimed that Indian Prime Minister Narendra Modi has agreed to halt the purchase of Russian oil.
In a post on the Truth Social platform, Trump stated that the United States would lower the reciprocal tariff on India from 25 percent to 18 percent. A White House official confirmed to AFP that an additional 25 percent tariff, which had been imposed on India for its oil purchases from Moscow, would also be removed.
Trump linked the agreement to the ongoing war in Ukraine, asserting that Modi “agreed to stop buying Russian Oil, and to buy much more from the United States and, potentially, Venezuela. This will help END THE WAR in Ukraine.”
In New Delhi, Prime Minister Modi confirmed the conversation and the tariff reduction in a post on X. “Wonderful to speak with my dear friend President Trump today. Delighted that Made in India products will now have a reduced tariff of 18%,” Modi wrote.
However, Modi’s statement made no mention of any agreement regarding the purchase of Russian oil.
India has become a major importer of Russian oil since the start of the war in Ukraine, providing Moscow with a critical market as Western nations imposed sanctions. In 2024, Russia accounted for nearly 36 percent of India’s total crude imports. The US has persistently pressured India to reduce these purchases.
The new US-India trade deal announced by President Donald Trump marks a significant development in economic relations between the two countries. The core of the agreement involves a reduction of US tariffs on Indian goods to 18 percent, a move celebrated by Indian Prime Minister Narendra Modi. This deal aims to resolve trade frictions that have been a focal point of discussions between the two administrations.
A key point of contention in the US-India trade deal is the claim by President Trump that Prime Minister Modi has committed to ceasing all purchases of Russian oil. While Trump presented this as a major breakthrough to isolate Russia, Modi’s public statements have so far focused only on the tariff reduction, leaving the status of the oil agreement unconfirmed. India remains one of the largest buyers of Russian crude, making this a critical aspect of the deal’s geopolitical implications.
