Indian Prime Minister Narendra Modi has agreed to stop purchasing Russian oil as part of a trade agreement reached with President Donald Trump that would lower tariffs on both countries’ goods.
The trade deal represents a de-escalation between the two countries, as Trump has imposed sweeping tariffs on Indian goods for its continued purchase of Russian oil, which is used to fund the war in Ukraine. India is the second-largest importer of Russian oil, following China.
Trump announced the trade deal after a call with Modi on Monday, stating India has “agreed to stop buying Russian Oil, and to buy much more from the United States and, potentially, Venezuela.”
Trump said the U.S. will reduce tariffs on India from 25% to 18%. The president added that India will also “move forward to reduce their Tariffs and Non Tariff Barriers against the United States, to ZERO” as well as purchase “over $500 BILLION DOLLARS of U.S. Energy, Technology, Agricultural, Coal, and many other products.”
“Our amazing relationship with India will be even stronger going forward,” he said.
India’s purchases of Russian oil have undermined the Trump administration’s efforts to end the war in Ukraine, as the administration has attempted to decrease oil export revenues to Russian President Vladimir Putin.
The U.S. and its allies have implemented various measures to reduce Russia’s oil revenues, which fund its war in Ukraine, including price caps on Russian oil bought by Western countries.
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Modi wrote on X Monday, “Delighted that Made in India products will now have a reduced tariff of 18%. Big thanks to President Trump on behalf of the 1.4 billion people of India for this wonderful announcement.”
“When two large economies and the world’s largest democracies work together, it benefits our people and unlocks immense opportunities for mutually beneficial cooperation,” he said.