US President Donald Trump revealed a trade agreement with India yesterday, stating that Prime Minister Narendra Modi had committed to ceasing the purchase of Russian oil due to the conflict in Ukraine.
Trump declared a reduction in tariffs on Indian products to 18 percent, down from the previous 25 percent reciprocal tariffs, with an additional 25 percent imposed for India’s procurement of Russian oil.
Prime Minister Modi acknowledged a positive phone conversation with Trump, expressing gratitude for the tariff reductions on Indian goods without addressing Trump’s claim regarding the cessation of Russian oil purchases.
The ongoing disagreement over India’s continued acquisition of Russian oil, which the US argues supports Russia’s actions in Ukraine, has been a point of contention as Trump strives for a resolution to the conflict.
In a statement on Truth Social, Trump announced the initiation of a trade deal between the US and India at Modi’s request, leading to a decrease in the reciprocal tariff from 25 percent to 18 percent.
A White House official informed AFP that the additional 25 percent tariff imposed on India for its Russian oil purchases in August would also be removed.
Additionally, Trump disclosed that Modi had agreed to stop procuring Russian oil and increase purchases from the US and potentially Venezuela, with the intention of aiding in ending the conflict in Ukraine.
Trump referred to Modi as a close ally and mentioned discussions on various topics, including trade and the resolution of Russia’s invasion of Ukraine.
Despite their amicable relationship, trade negotiations between Modi and Trump have been challenging, primarily due to the issue of Russian oil imports.
In December, during a visit to New Delhi, Russian President Vladimir Putin affirmed his readiness to continue supplying fuel to India despite US pressure.
While Trump previously claimed in October that Modi had committed to halting Russian oil purchases, an official agreement had not materialized until now.
Modi expressed satisfaction with the reduced tariff on Indian products in a social media post but did not address the topic of oil sales.
India became a significant buyer of Russian oil following the onset of the conflict in Ukraine, offering Moscow a crucial export outlet as European purchases declined sharply.
In 2024, Russia accounted for nearly 36 percent of India’s total crude imports, equating to around 1.8 million barrels of discounted oil per day.
Modi praised Trump’s leadership for promoting global peace, stability, and prosperity.
Trump has taken credit for resolving the brief but intense territorial conflict between India and Pakistan in May, which were both armed with nuclear capabilities.
