Tariff Cut, Russian Oil Claims: Global Media Weighs Donald Trump's India-US Trade Deal As White House Confirms Move

(MENAFN- Live Mint) India-US trade deal: US President Donald Trump has announced a sharp reduction in tariffs on Indian goods. Global news publications have reported the major shift in India-US trade relations.

According to Trump, following a phone call with Prime Minister Narendra Modi, the US reduced duties from 25% to 18%. At one point, the tariff peaked at 50%. This move was presented as a significant breakthrough after months of trade tension.

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PM Modi“agreed to stop buying Russian Oil, and to buy much more from the United States and, potentially, Venezuela,” Trump claimed.

“Our amazing relationship with India will be even stronger going forward,” he said.

International coverage highlighted geopolitical trade-offs linked to the deal. US media reported Donald Trump's claim that India would reduce or stop buying Russian oil.

The Washington Post noted that the US-India deal happened just days after India's“sweeping” trade agreement with the European Union. It was“part of the country's efforts to diversify its global partnerships amid tensions with Washington,” it added.

CNBC focused on the claim that, as part of the deal, India will“BUY AMERICAN” at“a much higher level” and stop buying oil from Russia. It also mentioned President Trump's claim that India would import oil from the US and possibly from Venezuela.

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The Wall Street Journal reported that Oil edged higher in the morning Asian session as traders“digested” the US-India trade deal.

“This could trigger more buying from Indian refiners,” it quoted ANZ Research analysts as saying.

The BBC mentions that Donald Trump, at Modi's request, claims to have immediately "agreed to a trade deal". It also mentions Trump's claim that PM Modi is committed to buying more than $500 billion ( ₹45 lakh crore) worth of American goods, including energy, technology and agriculture.

“The trade relationship between the US and India has been strained since the US imposed 50% tariffs on goods from India - the highest for a country in Asia - in August, including a 25% penalty linked to India's purchase of Russian oil,” the BBC noted.

The publication reports that a White House official confirmed that the Russian oil-linked tariffs will be dropped as part of the deal. Other tariffs will also be lowered to put the rate at 18%, according to the rep.

Russian oil claims

Energy Intelligence, headquartered in New York City, cited two top traders in India to report:“Indian refiners will cease purchases of Russian crude despite the discounts offered on landed supplies surging sixfold to more than $10 per barrel from mid-2025.”

The publication reported that during the Indian Energy Week in Goa from 27-30 January, officials told Energy Intelligence that the rise in Russian oil purchases in December-January did“not reflect the current priorities of the Modi government”.

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At the same time, experts have urged caution. Analysts note that, while the tariff reduction is confirmed, claims that India has committed to $500 billion in US purchases or will offer zero tariffs have not been officially confirmed by New Delhi. It is also unclear if India will immediately stop buying Russian oil.

According to CNN, the oil market is still“sceptical” about the deal. American traders are more eager about a potential US-Iran deal.

“India has been slow-walking these trade talks for months, and the terms here are so vague that they could be anything from major to nothingburger,” it quoted economist Scott Lincicome as saying.

PM Modi earlier posted about his conversation with Trump. In a social media post, the prime minister did mention the reduced tariff of 18%.

“Big thanks to President Trump on behalf of the 1.4 billion people of India for this wonderful announcement. When two large economies and the world's largest democracies work together, it benefits our people and unlocks immense opportunities for mutually beneficial cooperation,” he wrote.

However, there was no 'Russian oil' reference. India's Ministry of External Affairs (MEA) has not issued any formal statement either.

India remains one of the biggest buyers of Russian oil, especially since the start of the Russia-Ukraine war.

In December 2025, China bought 47% of Russia's crude exports, followed by India (38%), Turkiye (6%) and the EU (6%), according to the Centre for Research on Energy and Clean Air (CREA).

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