Kamal Ghorui
US President Donald Trump announced a breakthrough India–US trade deal, unveiling a sharp cut in tariffs on Indian exports to 18% and signalling a fresh momentum in bilateral economic ties. Prime Minister Narendra Modi welcomed the announcement, calling it a boost for cooperation between the world’s two largest democracies.The deal comes after weeks of uncertainty, after the US imposed tariffs of up to 50% in hopes that New Delhi stops crude oil imports from Russia. In a post on Truth Social, Trump claimed India had agreed to stop buying Russian oil, though PM Modi, in his public response, made no mention of Russian crude.The deal comes with certain conditions set by Trump.
Zero tariffs and non-tariff barriers for US goods
India will reduce tariffs and non-tariff barriers on US imports to zero, opening its market further to American companies. Referring to India dropping tariffs to 18 per cent, Trump said, “They will likewise move forward to reduce their Tariffs and Non Tariff Barriers against the United States, to ZERO.”
Stop buying Russian oil, get from Venezuela
The US said that the rollback of the 25% penal tariff is contingent on India completely ceasing its purchases of Russian oil. A New Delhi–based source quoted by Bloomberg said the US has agreed to withdraw the 25% penal tariff imposed on India over its procurement of Russian oil. Reuters also cited a White House official as saying the 25% punitive tariff would be removed, though an official confirmation is still awaited.Trump also announced that India would now buy oil from the United States and potentially Venezuela.
Strategic Alignment on Ukraine War
Trump linked the deal to India’s cooperation in ending the Russia-Ukraine war, arguing that halting Russian oil purchases would pressure Moscow. “We spoke about many things, including Trade, and ending the War with Russia and Ukraine. 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, which is taking place right now, with thousands of people dying each and every week!”
Purchasing US goods
India has committed to buying over $500 billion worth of US energy, technology, agricultural products and coal, significantly boosting American exports, according to Trump. “The Prime Minister also committed to “BUY AMERICAN,” at a much higher level, in addition to over $500 BILLION DOLLARS of US Energy, Technology, Agricultural, Coal, and many other products,” as said by the US President.The goods that India committed to includes petroleum, defence, electronics, pharma, telecom products and aircraft, according to a government official’s statement on Reuters.
