TradeDeal – India US Tariff Cut Tied to Shift on Russian Oil
TradeDeal – A newly announced trade agreement between India and the United States has triggered fresh debate over the intersection of commerce and geopolitics, after a senior American lawmaker linked tariff concessions to India’s changing stance on Russian oil purchases during the Ukraine conflict.
The agreement, confirmed on Monday by US President Donald Trump, reduces the reciprocal tariff on Indian goods entering the American market from 25 per cent to 18 per cent. The decision has been publicly welcomed by leaders on both sides, while also drawing attention to Washington’s broader strategy of pressuring Russia through its energy customers.
Graham Links Tariff Relief to Energy Decisions
US Senator Lindsey Graham said India had effectively earned the tariff reduction by reassessing its engagement with Russian energy supplies. In a post shared on social media platform X, Graham praised President Trump’s approach, suggesting that economic pressure on countries buying Russian oil was beginning to produce results.
According to Graham, targeting the customers who sustain Russia’s energy revenues could weaken Moscow’s ability to continue the war in Ukraine. He argued that India’s conduct set a precedent and expressed hope that other major importers of Russian oil would follow a similar path.
Pressure Strategy Aimed at Moscow
Graham framed the tariff decision as part of a larger effort to push Russian President Vladimir Putin toward negotiations. He said meaningful talks would only begin when the economic cost of continuing the war became unbearable for Moscow.
While acknowledging that the pressure campaign had not yet reached its peak, the senator suggested that recent developments, including India’s actions, indicated movement in the desired direction. He reiterated calls for an end to the conflict, describing the ongoing violence in Ukraine as a humanitarian tragedy.
Trump Confirms Deal After Modi Call
Earlier in the day, President Trump announced that Washington and New Delhi had reached a trade deal following a conversation with Prime Minister Narendra Modi. In a post on his social media platform Truth Social, Trump said the tariff reduction was granted out of friendship and respect for the Indian leader.
Trump described Modi as a close friend and a respected global figure, adding that their discussion covered trade issues as well as the war between Russia and Ukraine. He also claimed that India had agreed to significantly reduce its reliance on Russian oil and increase energy purchases from the United States, with potential imports from Venezuela also mentioned.
Commitments on Tariffs and Market Access
According to Trump, the agreement goes beyond the tariff cut announced by the US. He stated that India would move forward with reducing both tariff and non-tariff barriers against American goods, aiming to bring them down to zero. The US president said these steps would deepen economic ties and contribute to broader geopolitical goals.
The announcement marked one of the most detailed public outlines of the trade understanding so far, although formal documentation of the deal has not yet been released.
Modi Welcomes Reduced Tariffs for Indian Goods
Prime Minister Modi responded positively to the announcement, also using X to share his reaction. He said he was pleased that products made in India would now face a lower tariff of 18 per cent in the US market.
Modi thanked President Trump on behalf of India’s population, describing the decision as a significant boost for Indian exports. His message emphasized the economic benefits of the agreement rather than its geopolitical implications.
White House Clarifies Oil شرط
A White House official later clarified that the US would also remove an additional 25 per cent tariff imposed earlier on Indian imports over New Delhi’s purchase of Russian oil. However, the official stressed that the understanding requires India to fully stop, not merely reduce, such purchases.
When asked whether the lifting of tariffs was directly tied to India’s energy decisions, the official confirmed the linkage and reiterated Washington’s expectation of a complete halt in Russian oil imports from India.