US to cut tariffs on India to 18%, India agrees to end Russian oil purchases

U.S. President Donald Trump on Monday said he had agreed on a trade deal with India that slashes U.S. tariffs on Indian goods to 18% from 50% in exchange for India lowering trade barriers, stopping its purchases of Russian oil and buying oil instead from the U.S. and potentially Venezuela.



"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%,”Trump said in a social media post following a call with Indian Prime Minister Narendra Modi.



A White House official told Reuters that the U.S. was rescinding a punitive, 25% duty on all imports from India over its purchases of Russian oil that had stacked on top of a 25% "reciprocal" tariff rate.



Modi also committed to buy more than $500 billion worth of U.S. energy, technology, agricultural and other products, Trump added.