US President Donald Trump has said that he plans to lower tariffs on goods from India to 18 percent, from 25 percent, after Indian Prime Minister Narendra Modi agreed to stop buying Russian oil during their phone call.
Trump said on Monday that India would also start to reduce its import taxes on US goods to zero and buy $500 billion worth of American products.
"Out of friendship and respect for Prime Minister Modi and, as per his request, effective immediately, we agreed to a Trade Deal between the United States and India," Trump said.
Trump said that "he 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 said the Trump administration is dropping a 25 percent additional tariffs imposed on Indian imports over its purchases of Russian oil, in addition to lowering a country-specific tariff to 18 percent.
"We are also dropping the 25% tariff given India's agreement to stop buying Russian oil," the official said.
The decision comes after months after Trump pressing India to cut its reliance on cheap Russian crude.
India has taken advantage of slacked Russian oil prices as much of the world has sought to isolate Moscow for its February 2022 war with Ukraine.
Modi thanks Trump
Modi later said he had a "wonderful" phone call with Trump and thanked him for reducing tariffs on Indian products.
Modi's post did not mention Trump's assertion that India would reduce tariffs on US goods to zero and stop buying Russian oil.
The United States is effectively overseeing Venezuelan oil exports since abducting the South American country's leader Nicolas Maduro in a military attack in January.
Trump hit India, the world's most populous nation, with 25 percent reciprocal levies during his waves of "Liberation Day" tariffs last year.
He then stacked another 25 percent on top of that over India's purchases of Russian oil.
Modi was one of the first leaders to visit the White House after Trump's inauguration for his second term in January 2025, but that has not stopped difficult trade negotiations over the past year.
Trump also said in October that Modi had promised to stop buying Russian oil, but an agreement did not materialise at the time.
