US Reduces India Tariffs to 18% after Modi Commits to End Russian Oil Imports

President Donald Trump revealed on Monday plans to lower U.S. tariffs on Indian goods from 25% to 18%, after Indian Prime Minister Narendra Modi agreed to reduce purchases of Russian oil. The move comes after months of U.S. pressure on India to cut its reliance on discounted Russian crude, which India had increased following the February 2022 Russian invasion of Ukraine.

In addition to tariff reductions, Trump stated that India would gradually eliminate import taxes on American products and purchase $500 billion worth of U.S. goods. “This will help END THE WAR in Ukraine, which is taking place right now, with thousands of people dying each and every week!” Trump announced on Truth Social.

Modi responded positively on X, expressing delight at the tariff reduction and emphasizing the importance of Trump’s leadership for “global peace, stability, and prosperity.” He added, “I look forward to working closely with him to take our partnership to unprecedented heights.”

The tariff cut reverses a series of U.S. import taxes imposed in June and August last year. These earlier tariffs, which reached a combined 50%, were triggered by India’s limited market access for U.S. goods and continued Russian oil purchases. Historically, India’s ties with Russia have been stronger in defense than energy, though discounted Russian oil allowed India to increase its energy reserves while supporting Moscow’s economy.

The announcement comes shortly after India reached a historic free trade agreement with the European Union, opening nearly all goods between the two markets. India has also recently advanced trade deals with Oman and New Zealand.

While the U.S. continues to push for zero tariffs and broader access to Indian markets, India has expressed caution in sectors like agriculture and dairy, which provide livelihoods for millions. The U.S. Census Bureau reported a $53.5 billion trade deficit with India during the first 11 months of last year.