Trump to slash tariffs on India to 18% after Modi agrees to curb Russian oil
US President Donald Trump announced a cut in tariffs on Indian goods to 18% after Prime Minister Narendra Modi agreed to curb Russian oil purchases. The move links trade relief to geopolitical pressure over the Ukraine war
Washington: President Donald Trump said Monday that he plans to lower tariffs on goods from India to 18%, from 25%, after Prime Minister Narendra Modi agreed to stop buying Russian oil.
The move 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 invasion of Ukraine.
Trump said that India would also start to reduce its import taxes on US goods to zero and buy $500 billion worth of American products. “This will help END THE WAR in Ukraine, which is taking place right now, with thousands of people dying each and every week!” Trump said in a Truth social post announcing the tariff reduction on India.
Historically, India’s relationship with Russia revolves more around defence than energy. Russia provides only a small fraction of India’s oil but the majority of its military hardware. But India, in the aftermath of the Russian invasion, used the moment to buy discounted Russian oil, allowing it to increase its energy supplies while Russia looked to cut deals to boost its beleaguered economy and keep paying for its brutal war.
Trump has long had a warm relationship with Modi. But in June, he announced the United States would impose a 25% tariff on goods from India, plus an additional import tax because of India’s purchasing of Russian oil.
