India says it's going to stop buying Russian oil and lower trade barriers after U.S. President Donald Trump announced a trade deal with India on Monday (2 February) that cuts American tariffs on Indian goods to 18% from 50%.
Trump announced the deal on social media following a call with Indian Prime Minister Narendra Modi, noting that India would now buy oil from the U.S. and potentially Venezuela.
A White House official told Reuters that the U.S. was rescinding a punitive 25% duty on all imports from India over its purchases of Russian oil that had stacked on top of a 25% "reciprocal" tariff rate.
Trump's announcement added to positive sentiment over semiconductor makers and artificial intelligence (AI), lifting major indexes into positive territory on the day.
Modi also committed India to "BUY AMERICAN at a much higher level," in addition to buying more than $500 billion worth of U.S. energy, including coal, along with technology, agricultural and other products, Trump added.
"They will likewise move forward to reduce their Tariffs and Non Tariff Barriers against the United States, to ZERO," Trump said of India.
The deal brings India "broadly in line with its Asian peers on tariff rates" of 15% to 19%, said Madhavi Arora, economist at Emkay Global, adding that it would eliminate a disproportionate drag on India's exports and its rupee currency.
India and the United States are expected to issue a joint statement on their trade deal in the near term, once a “final understanding” is reached and technical procedures are completed, Indian Trade Minister Piyush Goyal said on Tuesday.
Separately, an Indian trade ministry source said India plans to offer zero tariffs to the United States mostly on industrial goods.
Indian markets had been battered since the tariffs were levied by Washington, making it the worst-performing market among emerging nations in 2025, with record outflows of foreign investors.
The U.S. Chamber of Commerce, which has long advocated a market-opening trade deal with India, called Trump's announcement progress towards that goal.
"We are optimistic that this is the first step toward a comprehensive trade agreement that will unlock even more private sector collaboration, and we look forward to reviewing the details of the deal," Chamber CEO Suzanne Clark said in a statement.
"Wonderful to speak with my dear friend President Trump today. Delighted that Made in India products will now have a reduced tariff of 18%," Modi said in a social media post on X.
"Big thanks to President Trump on behalf of the 1.4 billion people of India for this wonderful announcement."
India's Trade Minister Piyush Goyal said the deal would draw the U.S. and Indian economies closer together.
"This agreement unlocks unprecedented opportunities for farmers, MSMEs, entrepreneurs, and skilled workers to Make in India for the world," Goyal said in a post on X.
The deal comes less than a week after India signed a long-awaited trade deal with the European Union that is expected to eliminate or reduce tariffs on 96.6% of traded goods by value. That deal excludes EU soybeans, beef, sugar, rice and dairy from tariff reductions.
On Saturday (31 January), Trump teased a potential deal for India to buy Venezuelan oil after the U.S. seized Venezuelan President Nicolas Maduro in a military raid in early January.
The deal followed months of tense trade negotiations between the world's two largest democracies.
Last August, Trump doubled duties on imports from India to 50% to pressure New Delhi to stop buying Russian oil, and earlier this month said the rate could rise again if it did not curb its purchases.
Purchases of Venezuelan oil would help replace some of the Russian oil bought by India, the world's third-biggest oil importer.
India relies heavily on oil imports, covering around 90% of its needs, and importing cheaper Russian oil has helped lower its import costs since Moscow invaded Ukraine in 2022 and Western nations enacted sanctions on its energy exports.
Greek Prime Minister Kyriakos Mitsotakis arrived in Ankara on Wednesday, where Turkish President Recep Tayyip Erdoğan held an official welcoming cere...
Three people were injured after a gunman opened fire and held students and teachers hostage at a school in Hat Yai district in southern Thailand on We...
This week's Washington meeting between Israeli Prime Minister Netanyahu and U.S. President Trump is not routine, says geopolitical analyst Ilan Scialo...
The United States and Azerbaijan signed a new strategic partnership agreement in Baku on Tuesday, expanding cooperation on defence, energy security, a...
Uzbekistan is combining renewable energy expansion with sweeping land restoration, installing solar stations in local communities while rehabilitating...
Greek Prime Minister Kyriakos Mitsotakis arrived in Ankara on Wednesday, where Turkish President Recep Tayyip Erdoğan held an official welcoming ceremony at the Presidential Palace, marking the start of high-level talks between the two NATO allies.
This week's Washington meeting between Israeli Prime Minister Netanyahu and U.S. President Trump is not routine, says geopolitical analyst Ilan Scialom, calling it a “high-stakes preventive diplomatic strike” to secure Israel’s strategic priorities ahead of potential Iran talks.
The United States and Azerbaijan signed a new strategic partnership agreement in Baku on Tuesday, expanding cooperation on defence, energy security, artificial intelligence and economic ties.
The Philippine foreign ministry on Wednesday (11 February) called on the Chinese Embassy in Manila to adopt a “constructive” tone in its statements, amid an intensifying war of words between Chinese diplomats and Philippine officials, including senators.
JD Vance arrived in Armenia on Monday (9 February), becoming the first sitting U.S. Vice President to visit the country, as Yerevan and Washington agreed to cooperate in the civil nuclear sector in a bid to deepen engagement in the South Caucasus.
The United States and Azerbaijan signed a strategic partnership in Baku on Tuesday (10 February) encompassing economic and security cooperation as Washington seeks to expand its influence in a region where Russia was once the main power broker.
Buckingham Palace said it is ready to support any police investigation into allegations that Prince Andrew shared confidential British trade documents with late sex offender Jeffrey Epstein, as King Charles expressed “profound concern” over the latest revelations.
Chinese authorities have quietly signalled a shift in strategy, instructing some state-owned banks to rein in their purchases of U.S. government bonds.
U.S. military forces have seized a sanctioned oil tanker in the Indian Ocean after tracking the vessel from the Caribbean Sea, the Pentagon said on Monday.
This week's Washington meeting between Israeli Prime Minister Netanyahu and U.S. President Trump is not routine, says geopolitical analyst Ilan Scialom, calling it a “high-stakes preventive diplomatic strike” to secure Israel’s strategic priorities ahead of potential Iran talks.
Three people were injured after a gunman opened fire and held students and teachers hostage at a school in Hat Yai district in southern Thailand on Wednesday, police said.
The Philippine foreign ministry on Wednesday (11 February) called on the Chinese Embassy in Manila to adopt a “constructive” tone in its statements, amid an intensifying war of words between Chinese diplomats and Philippine officials, including senators.
Norway’s Sturla Holm Laegreid, who won bronze in the men’s biathlon at the Milano Cortina 2026 Winter Olympics on Tuesday (10 February) in Italy, stunned viewers by publicly admitting he had cheated on his girlfriend and pleaded for another chance during post-race interviews.
Kyiv is preparing to outline a simultaneous return to the ballot box and a public vote on a potential peace settlement, the Financial Times reports. It would mark a pivotal shift in the country's political landscape on the fourth anniversary of Russia's full-scale invasion of Ukraine.
You can download the AnewZ application from Play Store and the App Store.
What is your opinion on this topic?
Leave the first comment