Trump Slashes Tariffs as India Halts Russian Oil

Trump cuts tariffs after India vows to stop Russian oil

Donald Trump announced a significant trade deal with India, claiming Prime Minister Narendra Modi agreed to stop buying Russian oil. This follows months of U.S. pressure on India, a major Russian oil purchaser.

After a call with Modi, Trump declared on Truth Social that this move would help end the war in Ukraine. Modi, on X (formerly Twitter), celebrated the tariff news, avoiding mention of oil purchases.

India has relied on imports of cheaper Russian oil amid global tensions over the Ukraine conflict. With the new agreement, Trump claims India will increase oil imports from the U.S. and "potentially" Venezuela.

U.S. tariffs on Indian exports will drop from 25% to 18%, with India expected to eliminate barriers against U.S. goods. A 25% tariff from last summer will also be removed.

Modi praised Trump’s leadership, emphasizing global peace. Modi's relationship with Putin remains, with previous assurances of ongoing Russian oil supplies. However, India has reduced its Russian oil intake from 1.2 million to 800,000 barrels per day.

Trump also stated that Modi committed to over $500bn in purchases from the U.S., covering energy, tech, and agriculture. Trump touted the strong U.S.-India relationship, claiming both leaders are action-oriented.

The agreement signals a shift in global trade dynamics, with implications for the energy market and international diplomacy. As details emerge, the global community watches how this strategic partnership will influence the geopolitical landscape.

Key Takeaways

• Trump claims India halts Russian oil for tariff cuts.

• U.S.-India tariffs set to drop significantly.

• India reportedly pledges $500bn in U.S. purchases.

Adapted by ASEAN Now from Source 2026-02.02