# Trump Lowers India Tariffs to 18% After Modi Halts Russian Oil Purchases

> President Trump has cut US tariffs on Indian goods from 50% to 18% after Prime Minister Modi agreed to halt Russian oil imports and buy more energy from the US and Venezuela. Modi committed to purchasing over $500 billi…

Published: 2026-02-05 · Desk: Latest · Source: Al Jazeera

The US President had previously imposed a punitive 25% tariff on India over its purchases of Russian oil, in addition to a 25% “reciprocal” tariff.

Now, United States President Donald Trump has agreed to reduce US tariffs on Indian goods from 50% to 18%, in exchange for India lowering trade barriers, halting Russian oil imports, and purchasing oil from the US and potentially Venezuela.

“Out of friendship and respect for Prime Minister Modi, and at his request, we have agreed to a Trade Deal between the United States and India, whereby the US will charge a reduced Reciprocal Tariff, lowering it from 25% to 18%,” Trump announced on social media after a call with Modi.

A White House official confirmed to Reuters that the US would also rescind the punitive 25% duty imposed on Indian imports over Russian oil purchases.

Modi committed to buying over $500 billion worth of US energy, technology, agricultural, and other products. “Delighted that Made in India products will now have a reduced tariff of 18%,” Modi said on social media. “Big thanks to President Trump on behalf of 1.4 billion Indians for this announcement.”

Experts noted that while the deal represents a significant breakthrough, it may be too early to call it a full trade deal rather than a tariff agreement. Some cautioned that India has not formally agreed to lower tariffs on US goods in return.

Last August, Trump had doubled duties on Indian imports to 50% to pressure New Delhi to reduce Russian oil purchases, warning that the rate could rise further if the imports continued. Purchasing Venezuelan oil is expected to partially replace Russian oil imports. India has historically imported Venezuelan oil, though pricing and terms remain uncertain.

India depends heavily on oil imports, meeting around 90% of its demand through imports. Buying cheaper Russian oil has helped reduce costs since Moscow’s invasion of Ukraine and Western sanctions on Russian energy. India’s Russian oil imports have recently declined—from 1.2 million barrels per day (bpd) in January to projections of 1 million bpd in February and 800,000 bpd in March.

Indian markets had suffered under US tariffs, making them the worst-performing emerging market in 2025, with record foreign investor outflows. Despite tariff relief, experts say India will continue efforts to diversify and reduce risks in its trade relationships.

This tariff reduction comes shortly after India signed a free trade agreement with the European Union, potentially benefiting two billion people and eliminating tariffs on most goods between India and the EU’s 27 members. The deal covers textiles, medicines, wine, cars, and more, marking a major step in reducing trade barriers with Europe.

Original reporting: https://www.aljazeera.com/economy/2026/2/2/trump-to-slash-us-tariffs-on-india-from-50-percent-to-18-percent?fbclid=IwY2xjawPxPppleHRuA2FlbQIxMABicmlkETFDTmhiQ2dRdDF0UFB2aUdac3J0YwZhcHBfaWQQMjIyMDM5MTc4ODIwMDg5MgABHsxDjZzZVKx0Ya_cd1LhwAUAFSHMjJT2F17moDxbnebfoo_tE-ygijN0rET8_aem_TSc4pE_ki_vnOu5EI1_UQQ
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