The United States and India have agreed to lower U.S. tariffs on Indian goods in a bid to stabilize relations. President Trump said India would curb purchases of Russian oil and boost imports from the U.S. and Venezuela in return. Prime Minister Modi welcomed the deal, even though India currently imports about 1.5 million barrels of Russian crude a day. The agreement follows India’s recent free-trade deal with the EU and signals closer economic alignment with partners like Oman.
US and India Reach Trade Deal — Tariff Cuts Linked to Shift Away From Russian Oil
The United States and India announced a trade agreement to lower U.S. tariffs on Indian goods, an effort intended to ease strains in the bilateral relationship after months of tension.
Key Elements Of The Agreement
President Donald Trump, who had previously imposed steep tariffs on New Delhi over its ties to Moscow, said Monday that India has agreed to reduce purchases of Russian crude in exchange for cuts to U.S. duties on Indian products. The president added that India would increase imports of U.S. and Venezuelan oil as part of the shift.
Reactions And Context
Prime Minister Narendra Modi described the deal as a welcome development and said he was "delighted" by the outcome. Yet New Delhi had earlier resisted pressure on its energy purchases: India still imports roughly 1.5 million barrels of Russian crude oil per day, a fact that highlights the practical and logistical challenges of any rapid realignment in suppliers.
The agreement follows India’s recent major free-trade deal with the European Union and continued efforts by New Delhi to deepen economic ties with smaller partners, including Oman. Observers note the pact is as much strategic as it is commercial, illustrating how energy and trade policy are increasingly intertwined.
What Remains Unclear: Officials have not released full implementation details or a timetable for reducing Russian oil purchases, leaving questions about how and when the shift in imports will occur.
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