Trump Cuts Tariffs on Indian Goods to 18% After Modi Agrees to Stop Russian Oil Imports
Donald Trump has announced a cut in US tariffs on Indian goods to 18% after Narendra Modi agreed to stop buying Russian oil and increase imports from the US.
Washington: Donald Trump on Monday said the United States will reduce tariffs on goods imported from India to 18%, down from the earlier announced 25%.
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The decision came after Indian Prime Minister Narendra Modi agreed to stop purchasing Russia’s oil, a move seen as significant amid the ongoing war in Ukraine.
India to Cut Import Taxes and Buy US Goods
Trump said India has also agreed to:
- Reduce import taxes on US goods to zero
- Purchase $500 billion worth of American products
Announcing the move on social media, Trump said the tariff reduction would help weaken Russia economically and contribute to efforts to end the Ukraine war.
He stated that thousands of people are dying every week in the conflict and said cutting Russian oil revenues is an important step toward peace.
Pressure Over Russian Oil Purchases
For months, Trump had been pressing India to reduce its reliance on cheap Russian crude oil. After Russia’s invasion of Ukraine in February 2022, many countries tried to isolate Moscow, while India increased its purchases of discounted Russian oil to meet its energy needs.
Although Russia supplies only a small share of India’s total oil imports, it remains a major defence partner, providing a large portion of India’s military equipment.
Trade Tensions and Tariff Threats
In June, Trump announced that the US would impose a 25% tariff on Indian goods, along with an additional import tax, citing India’s continued oil purchases from Russia.
The latest decision to cut tariffs to 18% signals a shift in US–India trade relations following India’s reported agreement to change its oil import policy.
Trump–Modi Ties Remain Strong
Despite trade disputes, Trump has often described his relationship with Prime Minister Modi as warm. The new tariff announcement highlights continued engagement between Washington and New Delhi, even as global geopolitical tensions remain high.
The move is expected to have a major impact on US–India trade, global energy markets, and diplomatic efforts related to the Ukraine conflict.
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