WASHINGTON (AP) — President Donald Trump said Monday that he plans to lower tariffs on goods from India to 18%, from 25%, after Indian Prime Minister Narendra Modi agreed to stop buying Russian oil.
The move comes after months after Trump pressing India to cut its reliance on cheap Russian crude. India has taken advantage of slacked Russian oil prices as much of the world has sought to isolate Moscow for its February 2022 invasion of Ukraine.
Trump
said that India would also start to reduce its import taxes on U.S. goods to zero and buy $500 billion worth of American products.
“This will help END THE WAR in Ukraine, which is taking place right now, with thousands of people dying each and every week!” Trump said in a Truth Social post announcing the tariff reduction on India.
Modi posted on X that he was “delighted” by the announced tariff reduction and that Trump's “leadership is vital for global peace, stability, and prosperity.”
“I look forward to working closely with him to take our partnership to unprecedented heights,” Modi said.
Trump has long had a warm relationship with Modi, only to find it complicated recently by Russia's war in Ukraine and trade disputes.
In June, he announced the United States would impose a 25% tariff on goods from India after his administration felt the country had done too little to narrow its trade surplus with the U.S. and open up its markets to American goods. In August, Trump imposed additional import taxes of 25% on Indian products because of its purchases of Russian oil, putting the combined rate increase at 50%.
Historically, India’s relationship with Russia revolves more around defense than energy. Russia provides only a small fraction of India’s oil but the majority of its military hardware.
But India, in the aftermath of the Russian invasion, used the moment to buy discounted Russian oil, allowing it to increase its energy supplies while Russia looked to cut deals to boost its beleaguered economy and keep paying for its brutal war.
