Washington, February 3: The United States will eliminate a 25% tariff associated with India’s purchases of Russian crude oil, following India’s agreement to halt these imports. The White House announced this decision on Monday.
A White House official stated, “The 25% tariff on Russian oil will be removed under the agreement for India to cease its purchases.” This announcement came after a phone conversation between President Donald Trump and Prime Minister Narendra Modi, where they reached a consensus on a trade agreement.
In a detailed post on the social media platform Truth Social, President Trump mentioned that under this agreement, the reciprocal tariff on Indian goods will be reduced from 25% to 18% immediately. He described this as a significant shift in bilateral trade relations linked to energy cooperation and broader geopolitical goals.
Trump noted that the two leaders discussed various topics, including trade and the resolution of the Russia-Ukraine war. He claimed that Prime Minister Modi agreed to stop purchasing Russian oil and increase imports from the U.S. and potentially Venezuela.
Prime Minister Modi expressed his satisfaction on the platform X, stating, “I am pleased to know that the tariff on ‘Made in India’ products will now be reduced to 18%.”
He added, “When two major economies and the world’s largest democracies work together, it benefits our people and opens new avenues for mutually beneficial cooperation.”
A senior U.S. administration official informed that the additional 25% tariff was directly linked to India’s Russian oil purchases, which will now be lifted following New Delhi’s commitment to halt these imports.
This move connects trade policy directly with energy and geopolitical objectives, reflecting Washington’s efforts to limit Russia’s oil revenue amid the ongoing Russia-Ukraine war.
Since the conflict began, the U.S. has urged its allies to reduce or completely cease Russian energy purchases. Meanwhile, India had significantly increased its imports of discounted Russian crude oil to meet domestic energy needs. Indian officials have maintained that energy-related decisions are made based on national interests and market conditions.
India has also advocated for resolving the conflict through dialogue and diplomacy, maintaining relationships with both Russia and Western nations.
The White House’s clarity comes at a time when India and the U.S. are working to expand their trade and investment cooperation. Officials from both sides indicate that discussions are nearing the final stages, although New Delhi has yet to make a formal announcement.
Energy cooperation has become a crucial pillar of U.S.-India relations. In recent years, the U.S. has significantly increased its oil and gas exports to India, establishing itself as a reliable long-term supplier.
Indian policymakers, especially those in the refining and exporting sectors, are expected to closely monitor this tariff decision and its implications for global energy markets.
Earlier on Monday, the Ministry of External Affairs announced that Foreign Minister S. Jaishankar will visit Washington this week to participate in the ‘Critical Minerals Ministerial’ hosted by U.S. Secretary of State Marco Rubio.
According to the ministry, this meeting will focus on strengthening supply chains, clean energy transition, and strategic cooperation in critical minerals. Jaishankar is also scheduled to meet with senior U.S. administration officials.
Over the past decade, U.S.-India relations have consistently strengthened in defense, technology, and economic sectors. Both countries have deemed this partnership as vital for the coming years, with trade and energy cooperation at its core.
My name is Ganpat Singh Choughan. I am an experienced content writer with 7 years of expertise in the field. Currently, I contribute to Daily Kiran, creating engaging and informative content across a variety of categories including technology, health, travel, education, and automobiles. My goal is to deliver accurate, insightful, and captivating information through my words to help readers stay informed and empowered.
Leave a Comment