Trump to Cut India Tariffs to 18% After New Deal on Russian Oil Imports/ Newslooks/ WASHINGTON/ J. Mansour/ Morning Edition/ President Donald Trump announced he will lower U.S. tariffs on Indian goods from 25% to 18% after India agreed to stop purchasing Russian oil. India has also pledged to reduce its own import duties on U.S. products to zero and buy $500 billion worth of American goods. Trump says the agreement could help hasten the end of the war in Ukraine by further isolating Russia economically.
Quick Look
- Tariffs cut: U.S. tariffs on Indian goods to drop from 25% to 18%
- India’s oil shift: India agrees to stop buying Russian oil
- Massive U.S. export deal: India to purchase $500 billion in American products
- Import taxes slashed: India to phase out import duties on U.S. goods
- Ukraine conflict angle: Trump says deal will help end Russia’s war in Ukraine
- Past tensions: Trump imposed the 25% tariff last June over India’s oil deals with Russia
- Modi-Trump ties: Longstanding warm relationship between the two leaders
- India’s oil reality: Russian crude made up a small share but was economically beneficial post-2022
Deep Look
Tariff Deal Announced Amid Geopolitical Shift
President Donald Trump said Monday he will reduce tariffs on Indian imports from 25% to 18%, citing a new agreement with Indian Prime Minister Narendra Modi in which India committed to halting its purchases of Russian oil.
The announcement came via a post on Trump’s Truth Social platform, where the president wrote:
“This will help END THE WAR in Ukraine, which is taking place right now, with thousands of people dying each and every week!”
Trump emphasized that the deal also includes India committing to purchase $500 billion worth of U.S. goods and to completely eliminate its import taxes on American products.
Background: Pressure Over Russian Oil
India had been under increasing pressure from the United States to cut off its oil trade with Russia, which began offering steep discounts on crude following global sanctions after its February 2022 invasion of Ukraine.
Though India traditionally relies on Russia more for defense than energy, it became a prominent buyer of discounted Russian oil, allowing it to boost domestic energy reserves while Moscow sought economic relief.
Strategic Timing and Diplomatic Ties
Trump’s decision comes months after he raised tariffs to 25% in June, warning India of further penalties if it continued energy purchases from Russia. The announcement of a tariff rollback now signals improved diplomatic and trade relations between the two nations.
Trump and Modi have maintained a cordial relationship, previously emphasizing cooperation on defense, trade, and regional stability. Monday’s announcement appears to be a turning point in U.S.-India relations, aligning India more closely with Western economic and geopolitical interests.
You must Register or Login to post a comment.