Big Relief for India : US Cuts Tariff from 25 percent to 18 percent; Trump Says Modi Will Buy Oil from America Instead of Russia

New Delhi.

In a major development for India–US trade relations, the United States has announced a significant reduction in tariffs imposed on India. US President Donald Trump confirmed that following a high-level phone conversation with Prime Minister Narendra Modi, the additional tariff on India has been slashed from 25 percent to 18 percent. With this adjustment, the total tariff on Indian goods will now stand at 43 percent.

Major Shift in Energy Policy

President Trump shared details of the agreement on his social media platform, Truth Social, stating that Prime Minister Modi has agreed to stop purchasing oil from Russia. To meet India’s energy demands, the PM has committed to increasing imports from the United States. Furthermore, it was discussed that India may also source oil from Venezuela if required. Trump emphasized that this strategic shift is a crucial step toward ending the Russia–Ukraine conflict, where thousands are being killed every week.

Historic 500 Billion Dollar Trade Agreement

Describing Prime Minister Modi as a “strong and respected friend,” Trump announced that a formal trade deal was finalized immediately at India’s request. Key highlights of the agreement include:

• Reciprocal Tariff Cut: The US has reduced the additional tariff from 25 percent to 18 percent.

• “Buy American” Initiative: India has pledged to purchase over 500 billion dollars worth of US energy, technology, agriculture, coal, and other products.

• Zero Barriers: India will move toward eliminating its own tariffs and non-tariff barriers against the United States to zero.

Deepening Diplomatic Ties

This conversation marks the 7th time the two leaders have spoken over the phone in the 13 months since Trump took office. During the call, Trump also expressed his admiration for India’s iconic India Gate and shared his vision for a similar monument in Washington D.C., titled the “Arc de Trump.”

This agreement is expected to redefine the economic landscape between the two nations, strengthening bilateral ties while addressing global geopolitical challenges.

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Keywords : USA India Tariff Reduction, Donald Trump, Narendra Modi, Trade Deal, Russian Oil Ban, US India Energy Partnership, Buy American, Venezuela Oil, Reciprocal Tariff, 500 Billion Trade.

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