Trump cuts tariff on India by 18% after PM Modi pledges to end Russian oil buys

U.S. President Donald Trump announced on Monday, February 2, to reduce U.S. tariffs on Indian goods after India agreed to halt purchases of Russian oil.

This marks a victory for the Trump administration, which has been pressuring allies for years to economically isolate Russia over its war in Ukraine.

In his statement, Trump announced 18% reduction in tariffs from a combined rate of 50%.

In exchange, Indian Prime Minister Narendra Modi agreed to stop purchasing Russian crude oil.

On his Truth Social platform, Trump wrote, “This will help END THE WAR in Ukraine.”

Additionally, he stated that India will reduce its import tariffs on U.S. goods by 0% and purchase $500 billion in U.S. products.

Indian Prime Minister also exchanged words on social media, calling Trump’s leadership “viral for global peace” and shared his deep desire to take India-U.S. ties to “unprecedented heights.”

Previously, both countries had months of strained relations over this issue.

Last summer, Trump announced 25% tariffs on Indian goods, referring to an imbalanced trade relationship and India’s refusal to stop Russian oil imports.

In August, Trump imposed an additional 25% tariff to punish India for its continued energy purchases from Russia.

The U.S.-India deal comes days after the European Union agreed to a free trade agreement with India, highlighting a significant global shift in trade partnerships.