US President Donald Trump has said the United States will reduce tariffs on Indian exports after India agreed to stop buying oil from Russia, signalling a major shift in trade and energy relations between Washington and New Delhi.
Trump made the announcement on Monday via a post on Truth Social following a phone call with Indian Prime Minister Narendra Modi. He described Modi as “one of my greatest friends” and said the two leaders had reached an understanding that would pave the way for a broader trade agreement between their countries.
According to Trump, India committed to ending its purchases of Russian oil, a move that aligns with long-standing US efforts to limit Moscow’s energy revenues amid ongoing geopolitical tensions. Since the start of Western sanctions on Russia, India has significantly increased imports of discounted Russian crude, making it a key buyer alongside China.
In return, Trump said the US would cut tariffs on Indian goods, easing trade barriers that have been a point of friction between the two countries. While specific tariff reductions were not detailed, the announcement suggests progress toward a wider trade framework that could reshape bilateral economic ties.
India and the United States have repeatedly sought to deepen cooperation on trade, defence, and energy, but negotiations have often stalled over market access, tariffs, and regulatory issues. Trump’s statement indicates a more transactional approach, linking trade concessions directly to strategic and energy-related commitments.
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Neither the Indian government nor the White House has yet released a formal joint statement outlining the terms of the agreement. Indian officials have also not publicly confirmed the pledge to stop buying Russian oil, leaving questions about timelines, enforcement, and alternative energy suppliers.
If implemented, the shift could have wide implications for global oil markets, India’s energy security, and US–India relations, particularly at a time when Washington is seeking to strengthen partnerships in Asia while reducing Russia’s influence in global commodity flows.
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