US President Donald Trump announced a new trade agreement with India on Monday, stating he will reduce tariffs on Indian goods. Trump also claimed that Indian Prime Minister Narendra Modi promised to cease purchasing Russian oil amidst the ongoing war in Ukraine.
In a post on his Truth Social platform, Trump confirmed that the US would lower the reciprocal tariff on Indian goods from 25 percent to 18 percent. A White House official added that an additional 25 percent tariff, imposed in August due to New Delhi’s oil purchases from Moscow, would also be removed.
Prime Minister Modi confirmed the agreement in a post on X, describing a “wonderful” phone call with Trump and expressing gratitude for the reduced tariffs on Indian products. However, his statement made no reference to Trump’s assertion about halting Russian oil imports.
Trump stated that Modi “agreed to stop buying Russian Oil, and to buy much more from the United States and, potentially, Venezuela.” He added, “This will help END THE WAR in Ukraine.”
India has been a major purchaser of Russian crude oil since the conflict in Ukraine began, providing Moscow with a critical market as European nations reduced their imports. In 2024, Russia supplied approximately 36 percent of India’s total crude imports. The issue has remained a significant point of contention in US-India relations.
In his response, Modi noted that “President Trump’s leadership is vital for global peace, stability, and prosperity,” but did not elaborate on the details of their discussion regarding Russia or Ukraine.
A new US-India trade deal was announced by President Donald Trump, featuring a significant cut in tariffs on Indian products. The agreement, however, includes a contentious claim by Trump that Indian Prime Minister Narendra Modi has agreed to stop purchasing Russian oil, a major point of friction between the two nations.
The deal reduces US tariffs on Indian goods to 18%, down from a previous 25% reciprocal tariff and an additional 25% penalty related to India’s energy trade with Moscow. While Prime Minister Modi acknowledged the tariff reduction positively, his official statements have so far omitted any mention of a change in policy regarding Russian oil imports, which have been a crucial part of India’s energy supply since the war in Ukraine began.
Reported by multiple media sources.
