Trump announces US-India trade deal after Modi agrees to stop buying Russian oil

US President Donald Trump  has announced what he described as a new trade agreement with India after a commitment by Prime Minister Narendra Modi to stop purchasing Russian oil amid the Ukraine war.

Under the arrangement, Washington has reduced tariffs on Indian exports to 18 per cent. Earlier, Indian goods were subject to a 25 per cent reciprocal tariff, along with an extra 25 per cent levy imposed over New Delhi’s continued oil imports from Russia.

In a statement on his Truth Social account, Trump said that the decision was made “out of friendship and respect for Prime Minister Modi” and at Modi’s request. He said the agreement would take effect immediately.

According to Trump, Modi had agreed to stop buying oil from Russia and instead increase energy purchases from the United States and possibly Venezuela. “This will help END THE WAR in Ukraine,” Trump wrote.

A White House official later confirmed that the additional 25 percent tariff imposed in August over India’s Russian oil purchases would also be withdrawn as part of the deal.

Prime Minister Modi, meanwhile, acknowledged speaking with Trump but did not mention any change in India’s oil policy. In a statement, Modi described the conversation as “wonderful” and thanked the US president for easing trade restrictions on Indian products.

India’s continued import of discounted Russian oil has been a longstanding point of friction with Washington, which argues that such purchases indirectly support Moscow’s military campaign in Ukraine.

Trump has repeatedly pressed allies and partners to cut economic ties with Russia as he seeks to broker an end to the conflict.

The United States currently plays a central role in overseeing Venezuelan oil exports following the removal of President Nicolas Maduro in a US-backed military operation earlier this year.