Washington, February 2 (IANS). The US will remove 25 percent tariffs on Russian crude after India agreed to stop buying it. The White House gave this information on Monday.
A White House official told IANS, “As part of the agreement for India to end purchases of Russian oil, the 25 percent tariff on Russian oil will be removed.” This statement has come after the phone conversation between President Donald Trump and Prime Minister Narendra Modi, in which a trade agreement was agreed between the two countries.
President Trump, in a detailed post on the social media platform ‘Truth Social’, said that under this agreement, the US will immediately reduce the reciprocal tariff imposed on Indian goods from 25 percent to 18 percent. He described it as a major change in bilateral trade relations linked to energy cooperation and broader geopolitical goals.
Trump said the two leaders discussed “a wide range of topics, including trade and ending the Russia-Ukraine war.” He claimed that Prime Minister Modi has agreed to stop buying Russian oil and increase oil imports from the US, and possibly from Venezuela.
Prime Minister Modi, in his message on the social media platform ‘X’, said, “Happy to know that a lower tariff of 18 percent will now be applicable on ‘Made in India’ products.”
“When two major economies and the world’s largest democracies work together, it benefits our people and opens up new opportunities for mutually beneficial cooperation,” he said.
A senior US administration official told IANS that the additional 25 per cent tariff was directly linked to India’s purchases of Russian oil, which will now be removed after New Delhi committed to curb imports.
The move directly links trade policy to energy and geopolitical objectives and reflects Washington’s efforts to limit Russia’s oil earnings amid the Russia-Ukraine war.
Since the war began, the United States has been urging its allies to reduce or end Russian energy purchases. At the same time, India had significantly increased the purchase of Russian crude oil at concessional rates to meet domestic energy needs. Indian officials have maintained that energy-related decisions are taken based on national interest and market conditions.
India has also advocated ending the conflict through dialogue and diplomacy and has maintained relations with both Russia and Western countries.
This clarity from the White House has come at a time when India and America are working towards further expanding trade and investment cooperation. Officials from both sides say that the talks are nearing the final stage, although there has been no formal announcement from New Delhi yet.
Energy cooperation has become an important pillar of India-US relations. In recent years the US has significantly increased oil and gas exports to India and has established itself as a reliable long-term supplier.
The tariff decision is expected to be closely watched by Indian policy makers, industry – especially refineries and exporters – and global energy markets.
Earlier on Monday, the External Affairs Ministry announced that External Affairs Minister S. Jaishankar will visit Washington this week, where he will participate in the ‘Critical Minerals Ministerial’ hosted by US Secretary of State Marco Rubio.
According to the ministry, the meeting will focus on supply chain strengthening, clean energy transition and strategic cooperation in critical minerals. Jaishankar is also proposed to meet senior officials of the US administration.
Over the past decade, India-US relations have steadily strengthened in the defence, technology and economic sectors. Both countries have termed this partnership as the most important in the coming years, in which trade and energy cooperation will be at the center.
–IANS
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