Trump signals tariff cut for India after pledge to halt Russian oil imports

U.S. President Donald Trump says his administration plans to lower tariffs on Indian goods to 18 per cent, down from the current 25 per cent, after India agreed to stop purchasing oil from Russia. The announcement follows months of pressure from Washington urging New Delhi to reduce its reliance on discounted Russian crude amid the ongoing war in Ukraine.

India has been one of the world’s largest buyers of Russian oil since Moscow’s February 2022 invasion of Ukraine, taking advantage of lower prices as many Western countries moved to restrict energy trade with Russia. The issue has been a recurring point of friction in U.S.–India relations, particularly as Washington has sought broader international support to economically isolate Moscow.

Trump also said India committed to eliminating import taxes on U.S. goods and to purchasing up to $500 billion worth of American products over time. He framed the agreement as both an economic win for the United States and a step toward reducing Russia’s ability to finance the war.

In a post on the Truth Social platform, Trump linked the decision directly to the conflict in Ukraine, arguing that cutting off Russian oil revenue would help shorten the war. The White House has not yet released further details on the timeline for the tariff changes or how India’s commitments would be monitored.

The proposed tariff reduction comes as global trade relationships remain strained by geopolitical conflicts and protectionist policies. Canadian exporters and energy markets are also watching closely, as shifts in U.S. trade policy can influence global supply chains and commodity prices.