US President Donald Trump announced on Monday, February 2, that he would reduce US tariffs on Indian products after India agreed to stop purchases of Russian oil.
This marks a victory for the Trump administration, which has been pressuring its allies for years to economically isolate Russia over its war in Ukraine.
In his statement, Trump announced an 18% reduction in tariffs from a combined rate of 50%.
In exchange, 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.”
Furthermore, he stated that India will reduce its import tariffs on US products by 0% and will purchase $500 billion worth of 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 ties to “unprecedented heights.”
Previously, both countries had months of tense relations over this issue.
Last summer, Trump announced 25% tariffs on Indian goods, a reference to an unbalanced trade relationship and India’s refusal to stop imports of Russian oil.
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.
