U.S., India Finalize Trade Deal as Trump Links Agreement to Ending Ukraine War

by Emmitt Barry, Worthy News Washington D.C. Bureau Chief

(Worthy News) – The United States will reduce tariffs on Indian goods to 18% after President Donald Trump announced a new trade agreement with India following a call with Prime Minister Narendra Modi. The reduced rate marks a rollback from the 25% “reciprocal” tariff imposed last year, along with an additional 25% penalty tied to India’s purchases of Russian oil, the Wall Street Journal reported.

Trump said the agreement includes India’s commitment to stop buying Russian oil and significantly increase purchases of American energy, agricultural, and technology products. A White House official confirmed that once India ends its Russian oil imports, the oil-related tariff penalty will be dropped, bringing the final tariff rate to 18%.

In a post on Truth Social, Trump said the deal also commits India to reducing both tariff and non-tariff barriers on U.S. goods to zero and to purchasing more than $500 billion worth of American products. Modi responded on X, saying he was “delighted” that Made in India exports would benefit from the reduced tariff rate.

Trump further tied the agreement to his broader foreign policy goals, saying the decision by India to halt Russian oil purchases would help pressure Moscow economically and contribute to ending the war in Ukraine. In his Truth Social post, Trump said the shift away from Russian energy would “help END THE WAR in Ukraine,” calling energy trade a key lever in stopping the ongoing conflict that continues to claim thousands of lives each week.

The lower tariffs are expected to take effect immediately, though the White House has not yet released formal documentation implementing the change. The deal represents a significant realignment in U.S.–India economic relations and underscores Trump’s strategy of using trade and energy policy as tools in global conflict resolution.

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