United States Cuts India Tariffs in Oil-Linked Deal, Trump Ties Rollback to Russian Crude Imports

Washington DC:US President Donald Trump announced a significant rollback of tariffs on Indian goods following a high-level phone conversation with Prime Minister Narendra Modi, linking the move to India’s commitment to stop purchasing crude oil from Russia. The announcement marks a major easing of trade tensions that had strained relations between the two countries for months.

Taking to social media, Trump said the United States would reduce tariffs on Indian exports to 18 per cent from the existing 25 per cent. In addition, US officials confirmed that an extra punitive duty of 25 per cent, imposed earlier in response to India’s continued imports of Russian oil, would also be withdrawn.

Trump claimed that India had agreed to eliminate all tariffs and non-tariff trade barriers on US goods, writing that they would be reduced “to ZERO.” He further stated that India would purchase over $500 billion worth of American energy, technology, agricultural products, coal, and other goods, calling the agreement a “historic trade win” for the United States.

New Delhi:Prime Minister Narendra Modi confirmed the tariff reduction, stating on social media that “Made in India products will now face a reduced US tariff of 18%.” However, the Indian side did not offer details on commitments related to Russian oil imports or agricultural market access—issues that have long been sensitive for New Delhi.

Agricultural imports, in particular, remain a major sticking point, as India has traditionally resisted opening its domestic farm sector to foreign competition, citing concerns over farmer livelihoods.

The deal signals a renewed push by both nations to reset economic ties amid shifting global energy dynamics and geopolitical pressures linked to the Russia-Ukraine conflict. While the full scope of the agreement is yet to be officially released, the announcement has already sparked strong reactions in global trade and energy markets.