Shippingtelegraph: US cut tariffs on India to 18% as Delhi agrees to stop buy Russian oil

US President Donald Trump on Monday announced a long-awaited trade deal with New Delhi, cutting tariff rates on Indian exports from 25% to 18%. Trump said the move followed India’s agreement to stop buying Russian oil.

The announcement was made following a phone call between Trump and Indian prime minister Narendra Modi.

In a social media post shortly after concluding a call with Modi, Trump said he was announcing the deal, with immediate effect, whereby the United States will charge a reduced reciprocal tariff, lowering it from 25% to 18%.

“He agreed to stop buying Russian oil, and to buy much more from the United States and, potentially, Venezuela,” Trump wrote on Truth Social.

He added that he, at Modi’s request, agreed to a trade deal -effective immediately- that would see tariffs lowered and India’s tariffs and non-tariff barriers against the United States reduced to zero.

Additionally, Trump said Modi committed to “Buy American,” at a much higher level, in addition to over $500bn of U.S. energy, technology, agricultural, coal, and many other products.

“Prime Minister Modi committed to $500bn of purchases of U.S. energy, transportation, agricultural products…. This is a great deal, and a huge win for American workers, businesses, and consumers alike,” told reporters White House press secretary Karoline Leavitt.

As per the American leader’s social media post, India agreed to stop buying Russian oil, and to buy much more from the United States and, potentially, Venezuela. “This will help end the war in Ukraine, which is taking place right now, with thousands of people dying each and every week,” wrote Trump.

Prime minister Modi also commented on his phone call with Trump and the tariff cut. “Wonderful to speak with my dear friend President Trump today. Delighted that Made in India products will now have a reduced tariff of 18 per cent,” Modi said in a social media post on X. “Big thanks to President Trump on behalf of the 1.4 billion people of India for this wonderful announcement.”

The India-US trade agreement indicates a possible thaw in ties between the two nations, which had drastically been affected last year.

It remains to be seen what’s in the fine print of the trade deal that India and the US have agreed upon. While the finer details of the trade deal are not known yet, the reduction in tariff is expected to give a boost, according to analysts, to many sectors in India.