WASHINGTON: US President Donald Trump on Monday said he had agreed on a trade deal with India that slashes Washington’s tariffs on Indian goods to 18 per cent from 50pc in exchange for New Delhi lowering trade barriers, stopping its purchases of Russian oil and buying oil instead from the US and potentially Venezuela.
“Out of friendship and respect for Indian Prime Minister [Narendra] Modi and, as per his request, effective immediately, we agreed to a Trade Deal between the United States and India, whereby the United States will charge a reduced Reciprocal Tariff, lowering it from 25pc to 18pc,” Trump said in a social media post following a call with the Indian premier.
Describing Modi as “one of my greatest friends,” Trump said that “he [Modi] agreed to stop buying Russian Oil, and to buy much more from the United States and, potentially, Venezuela. “This will help END THE WAR in Ukraine.”
A White House official told Reuters that the US was rescinding a punitive, 25pc duty on all imports from India over its purchases of Russian oil that had stacked on top of a 25pc “reciprocal” tariff rate.
Tariffs on New Delhi cut from 50pc to 18pc in exchange for ‘not buying Russian oil’
Modi also committed to buy more than $500 billion worth of US energy, technology, agricultural and other products, Trump added.
Modi’s response
“Wonderful to speak with my dear friend President Trump today. Delighted that Made in India products will now have a reduced tariff of 18pc,” Modi said in a social media post on X.
“Big thanks to President Trump on behalf of the 1.4 billion people of India for this wonderful announcement.”
However, Modi’s post did not mention Trump’s assertion that India would stop buying Russian oil.
US-listed shares of major Indian companies rallied on the news. IT consulting firm Infosys was up 3.53pc in afternoon trading, consultancy Wipro rose 7pc, HDFC Bank gained 3.4pc and the iShares MSCI India exchange-traded fund rallied 3.3pc.
On Saturday, Trump teased a potential deal for India to buy Venezuelan oil after the US seized Venezuelan President Nicolas Maduro in a military raid in early January. The deal comes after months of tense trade negotiations between the two countries.
Last August, Trump doubled duties on imports from India to 50pc to pressure New Delhi to stop buying Russian oil, and earlier this month said the rate could rise again if it did not curb its purchases.
Purchases of Venezuelan oil would help replace some of the Russian oil bought by India.
Published in Dawn, February 3rd, 2026
