United States President Donald Trump announced a trade deal with India on Tuesday, saying that Indian Prime Minister Narendra Modi had promised to stop buying Russian oil over the war in Ukraine.
Trump said he was cutting tariffs on Indian goods to 18 percent. He had previously levied 25 per cent reciprocal tariffs, plus an additional 25 per cent for the country's purchases of Moscow's oil.
"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," Trump posted on his Truth Social platform.
The United States is effectively overseeing Venezuelan oil exports since toppling the South American country's leader, Nicolás Maduro, in a military operation in January.
Modi said Monday it was "wonderful" to speak with Trump and thanked him for reducing levies on Indian products.
Modi did not reference Trump's assertion about halting Russian oil purchases, but said that Trump's "leadership is vital for global peace, stability, and prosperity", adding that "India fully supports his efforts for peace."
Trump has repeatedly claimed credit for ending the brief but intense armed conflict between nuclear-armed neighbours India and Pakistan in May.
India's refusal to stop buying oil from Russia — which the US says funds Russia's invasion of Ukraine — has been a bone of contention for months as Trump seeks an elusive end to the war.
"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 in his post.
Trump imposed a reciprocal tariff on India during his waves of global "Liberation Day" tariffs last year.
A White House official said an additional 25 per cent tariff Trump had slapped on India for its purchase of Russian oil in August would also be dropped.
India emerged as a major buyer of Russian oil after the start of the Ukraine war, providing Russia with a crucial export market as Europe sharply reduced purchases.
In 2024, Russia supplied nearly 36 per cent of India's total crude imports, around 1.8 million barrels of discounted oil per day.
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