US President Donald Trump announced on Monday (February 2) that he will reduce US tariffs on Indian goods after India agreed to stop buying Russian oil.
This marks a victory for the Trump administration, which has been pushing allies for years to economically isolate Russia over its war in Ukraine.
In his statement, Trump announced an 18% reduction in tariffs from an overall rate of 50%.
In return, Indian Prime Minister Narendra Modi agreed to stop buying Russian crude oil.
On his Truth Social platform, Trump wrote: “This will help end the war in Ukraine.”
In addition, he said India will reduce its import tariffs on US goods by 0% and buy $500 billion in US products.
The Indian prime minister also exchanged words on social media, calling Trump’s leadership “viral for global peace” and sharing his deep desire to take India-US relations to “unprecedented heights.”
Previously, both countries had months of strained relations over this issue.
Last summer, Trump announced 25% tariffs on Indian goods, citing an unbalanced trade relationship and India’s refusal to stop Russian oil imports.
In August, Trump imposed an additional 25% tariff to punish India for its continued energy purchases from Russia.
The US-India deal comes days after the European Union agreed to a free trade deal with India, highlighting a significant global shift in trade partnerships.
