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President Donald Trump unveiled a new trade agreement with India on Tuesday, highlighting that Indian Prime Minister Narendra Modi committed to halting the purchase of Russian oil amid the ongoing conflict in Ukraine.
Trump announced a reduction in tariffs on Indian goods to 18%, a significant drop from the previous 25% tariffs he had imposed. These tariffs were initially introduced as a reciprocal measure, along with an additional 25% penalty for India’s acquisition of Russian oil.
On his Truth Social platform, Trump shared, “Modi agreed to cease buying Russian oil and plans to increase purchases from the United States and potentially Venezuela. This step will aid in bringing an end to the war in Ukraine.”
The United States has been controlling Venezuelan oil exports after orchestrating the removal of the country’s leader, Nicolás Maduro, earlier in the year through a military operation.
Prime Minister Modi expressed his gratitude on Monday, describing his conversation with Trump as “wonderful” and appreciating the reduced tariffs on Indian exports.
Modi did not reference Trump’s assertion about halting Russian oil purchases, but said that Trump’s “leadership is vital for global peace, stability, and prosperity”, adding that “India fully supports his efforts for peace.”
Trump has repeatedly claimed credit for ending the brief but intense armed conflict between nuclear-armed neighbours India and Pakistan in May.
India’s refusal to stop buying oil from Russia — which the US says funds Russia’s invasion of Ukraine — has been a bone of contention for months as Trump seeks an elusive end to the war.
“Out of friendship and respect for Prime Minister Modi and, as per his request, effective immediately, we agreed to a Trade Deal between the United States and India,” Trump said in his post.
Trump imposed a reciprocal tariff on India during his waves of global “Liberation Day” tariffs last year.
A White House official said an additional 25 per cent tariff Trump had slapped on India for its purchase of Russian oil in August would also be dropped.
India emerged as a major buyer of Russian oil after the start of the Ukraine war, providing Russia with a crucial export market as Europe sharply reduced purchases.
In 2024, Russia supplied nearly 36 per cent of India’s total crude imports, around 1.8 million barrels of discounted oil per day.
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