Trump agrees to lower tariffs on India after Modi agrees to stop buying Russian oil

WASHINGTON (TNND) — President Donald Trump announced Monday that he will lower tariffs on goods from India from 25% to 18% after speaking with Indian Prime Minister Narendra Modi.

Trump said Modi agreed to stop buying Russian oil and it comes after months of the president pushing the country to end the use of the cheap Russian crude.

“It was an Honor to speak with Prime Minister Modi, of India, this morning. He is one of my greatest friends and, a Powerful and Respected Leader of his Country. We spoke about many things, including Trade, and ending the War with Russia and Ukraine. He agreed to stop buying Russian Oil, and to buy much more from the United States and, potentially, Venezuela,” Trump wrote on TRUTH Social.

This will help END THE WAR in Ukraine, which is taking place right now, with thousands of people dying each and every week! Out of friendship and respect for Prime Minister Modi and, as per his request, effective immediately, we agreed to a Trade Deal between the United States and India, whereby the United States will charge a reduced Reciprocal Tariff, lowering it from 25% to 18%. They will likewise move forward to reduce their Tariffs and Non Tariff Barriers against the United States, to ZERO.”

The president said India would also begin to reduce its import taxes on U.S. goods to zero, while also purchasing $500 billion in American-made products.

AMMAN, JORDAN – DECEMBER 16: Prime Minister of India Narendra Modi addresses the India Jordan Forum on December 16, 2025 in Amman, Jordan. India’s Prime Minister Narendra Modi is on an official visit to Jordan, coinciding with the 75th anniversary of the two nations’ establishment of diplomatic ties. During his two-day trip Modi is holding talks with King Abdullah II, before continuing his journey with visits to Ethiopia and Oman. Prime Minister Modi cancelled a pre-planned tour in the historic Nabatean city of Petra due to bad weather. (Photo by Salah Malkawi/Getty Images)

In the past, India’s relationship with Russia revolved around defense rather than energy, with Russia providing a majority of its military hardware and only a small fraction of oil.

“The Prime Minister also committed to “BUY AMERICAN,” at a much higher level, in addition to over $500 BILLION DOLLARS of U.S. Energy, Technology, Agricultural, Coal, and many other products. Our amazing relationship with India will be even stronger going forward. Prime Minister Modi and I are two people that GET THINGS DONE, something that cannot be said for most. Thank you for your attention to this matter!” Trump wrote.

After Russia invaded Ukraine in 2022, India used the moment to buy discounted oil from Russia.

President Trump has had a solid relationship with India’s Modi, but announced the 25% tariff and additional import tax in June because of the Russian oil purchasing.