Trump Lowers India Tariffs, Citing Agreement to Halt Russian Oil Purchases
President Trump announced a reduction in tariffs on Indian goods from 25% to 18%, claiming India agreed to cease Russian oil purchases and commit to $500 billion in U.S. product imports. This move, Trump stated, aims to help end the Russia-Ukraine war by cutting Moscow's oil revenue. Indian Prime Minister Modi welcomed the tariff reduction but did not explicitly confirm the Russian oil aspect. India has been a major buyer of discounted Russian oil, and this development comes amid India's new EU free trade deal. The reduction also drops a prior 25% tariff imposed for buying Russian oil.
President Donald Trump declared a reduction in tariffs on Indian goods, proposing a drop from an effective 25% to 18%. This change, announced via Truth Social, is based on Trump's assertion that Indian Prime Minister Narendra Modi agreed to stop purchasing Russian oil and committed to buying $500 billion worth of American products. Trump framed this as a critical step to help end the ongoing Russia-Ukraine war, aligning with his strategy to disrupt Moscow's oil revenues. Previously, India faced a 25% tariff increase in August 2023 specifically due to its continued reliance on discounted Russian crude following the 2022 invasion of Ukraine. While Prime Minister Modi publicly expressed delight over the tariff reduction and praised Trump's leadership, his posts made no direct reference to ceasing Russian oil imports. This diplomatic maneuver unfolds as Trump's special envoy and son-in-law, Jared Kushner, are reportedly engaged in three-way talks in Abu Dhabi to find a resolution to the Ukraine conflict. India has significantly increased its import of Russian oil since the war began, with Russia supplying nearly 36% of India's total crude imports in 2024. The tariff adjustments come shortly after India also finalized a major free trade agreement with the European Union, signaling a broader diversification of its trade partnerships and geopolitical strategy.
