India-US trade deal: US President Donald Trump has announced a significant reduction in tariffs on Indian goods. Global news publications have announced a major shift in trade relations between India and the US.
According to Trump, after a phone call with Prime Minister Narendra Modi, the US reduced tariffs from 25% to 18%. At one point the rate peaked at 50%. The move was presented as a major breakthrough after months of trade tensions.
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Prime Minister Modi “has agreed to stop buying Russian oil and to buy a lot more from the United States and potentially from Venezuela,” Trump said.
“Our wonderful relationship with India will be even stronger in the future,” he said.
International coverage highlighted the geopolitical trade-offs involved in the deal. US media reported on Donald Trump’s claim that India will limit or stop buying Russian oil.
The Washington Post noted that the US-India deal came just days after India’s “major” trade deal with the European Union. It was “part of the country’s efforts to diversify its global partnerships amid tensions with Washington,” he added.
CNBC focused on claims that under the deal, India would “BUY AMERICAN” at a “much higher level” and stop buying oil from Russia. He also mentioned President Trump’s claim that India will import oil from the US and possibly Venezuela.
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The Wall Street Journal reported that oil rose in the morning Asian session as traders “digested” the US-India trade deal.
“This could trigger further purchases from Indian refiners,” analysts at ANZ Research were quoted as saying.
The BBC mentions that Donald Trump says he immediately “agreed to a trade deal” at Modi’s request. He also mentions Trump’s claim that PM Modi has pledged to buy more than $500 billion ( ₹45 lakh crore) of US goods, including energy, technology and agriculture.
“Trade relations between the US and India have been strained since the US imposed 50% tariffs on goods from India in August – the highest of any country in Asia, including a 25% penalty linked to India’s purchases of Russian oil,” the BBC noted.
The publication reports that a White House official confirmed that Russian oil tariffs will be lifted as part of the deal. Other tariffs will also be reduced to 18%, according to Rep.
Russian oil claims
New York-based Energy Intelligence quoted two top traders in India as saying: “Indian refiners will stop buying Russian crude despite discounts offered for unloaded supplies, which will rise sixfold to more than $10 a barrel from mid-2025.
The publication said that during the India Energy Week in Goa from January 27-30, officials told Energy Intelligence that the increase in Russian oil purchases in December-January “does not reflect the current priorities of the Modi government”.
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At the same time, experts urge caution. Analysts note that while the tariff cuts are confirmed, claims that India has committed to $500 billion in US purchases or will offer zero tariffs have not been officially confirmed by New Delhi. It is also unclear whether India will immediately stop buying Russian oil.
According to CNN, the oil market is still “sceptical” about the deal. US traders are more eager for a potential US-Iran deal.
“India has been slowly conducting these trade talks for months and the terms here are so vague that they could be anything from a big burger to a nothing burger,” he quoted economist Scott Lincicom as saying.
PM Modi had earlier posted about his conversation with Trump. In a post on social media, the Prime Minister mentioned a reduced duty of 18%.
“A big thank you to President Trump on behalf of the 1.4 billion people of India for this wonderful announcement. When two major economies and the world’s largest democracy work together, it benefits our people and opens up tremendous opportunities for mutually beneficial cooperation,” he wrote.
However, no mention of “Russian oil” was made. India’s Ministry of External Affairs (MEA) has not issued any formal statement either.
India remains one of the largest buyers of Russian oil, especially since the start of the Russo-Ukrainian war.
In December 2025, China bought 47% of Russia’s oil exports, according to the Center for Energy and Clean Air Research (CREA), followed by India (38%), Turkey (6%) and the EU (6%).