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India Agrees to Drop Russian Oil in Sweeping US–India Trade Deal
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US President Donald Trump announced a major trade agreement with Indian Prime Minister Narendra Modi, in which both sides agreed to reduce tariffs and that India stops buying Russian oil and buys more from the United States and, possibly, Venezuela, Reuters reported on February 2, citing Trump’s social media post.
Under the deal, the US will lower its reciprocal tariff on Indian goods from 25% to 18%, a move framed by Trump as a gesture of friendship and mutual respect after a call with Modi.
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Donald Trump previously raised tariffs on India to 50%, a move that followed his earlier 25% tariff imposition. He stated that the additional tariff stemmed from India’s continued import of Russian oil, which Trump argued was fueling Russia’s war machine in Ukraine.
India is the second-largest importer of Russian crude oil in October of 2025, right after China, with purchases touching 2.5 billion compared with Beijing’s 3.7 billion.
As part of the new agreement, India committed to stop buying Russian oil and to significantly increase its imports from the United States and potentially from Venezuela, Trump said, while also pledging to purchase more than $500 billion worth of US energy, technology, agricultural, and other products, according to Reuters.
“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 Narendra Modi.
Earlier, Russia had already sharply increased discounts on its oil sold to India, with some cargoes recently priced as low as $22–25 per barrel, as Moscow struggled to retain buyers amid tighter US sanctions.
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