Trump to Cut Tariffs on Indian Goods to 18% After India Halts Russian Oil Purchases

U.S. President Donald Trump announced that his administration will reduce tariffs on Indian goods to 18%, down from 25%, after Prime Minister Narendra Modi agreed to stop purchasing Russian oil. Trump said the move is part of a broader effort to curb Russia’s oil revenue and push for an end to the Ukraine war.

The tariff rollback follows India’s commitment to stop buying Russian crude and boost imports of U.S. products amid efforts to pressure Moscow over the Ukraine war.

India had increased its intake of discounted Russian crude after Moscow’s 2022 invasion of Ukraine, benefiting from lower prices while much of the world distanced itself from Russia. Trump had repeatedly urged India to cut back on those purchases, linking trade concessions to geopolitical cooperation.

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Along with the tariff reduction, Trump said India will eliminate import taxes on U.S. goods and commit to buying $500 billion worth of American products. He claimed the agreement would support global peace and help bring the Ukraine conflict closer to an end.

Prime Minister Modi welcomed the announcement, praising Trump’s leadership and expressing optimism about strengthening U.S.–India ties. Both leaders highlighted the deal as a step toward deeper economic and strategic cooperation. The decision comes after months of trade tensions, during which Trump imposed steep tariffs on Indian products over trade imbalances and Russian oil imports. If implemented fully, the new 18% tariff rate would place India closer to U.S. trading partners such as the European Union and Japan.

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