President Trump and Prime Minister Modi have reached a landmark trade agreement that slashes U.S. tariffs on Indian products in exchange for India’s commitment to abandon Russian oil for U.S. and Venezuelan alternatives.
President Donald Trump announced a significant reduction in tariffs on Indian goods Monday, lowering the rate from 50% to 18%. This de-escalation follows a high-stakes phone call with Prime Minister Narendra Modi, who reportedly agreed to stop purchasing Russian oil. Trump stated, “He [Modi] agreed to stop buying Russian Oil, and to buy much more from the United States and, potentially, Venezuela.”
The agreement aims to replace India’s daily import of 1.5 million barrels of Russian crude with American and Venezuelan supplies. While India has not explicitly confirmed the oil halt in public statements, Modi welcomed the tariff relief on X, formerly Twitter, calling it “wonderful news.” The deal also includes an Indian commitment to purchase over $500 billion in U.S. energy and technology.
Experts remain skeptical about the speed of this transition, noting that Venezuela’s dilapidated infrastructure requires years of investment to meet India’s massive demand. However, the removal of the 25% punitive “Russian oil” tariff provides immediate relief to Indian exporters. Trump linked the move to efforts to “END THE WAR in Ukraine” by stripping Russia of its largest energy customer.