India "Earns" US Tariff Cut by Reducing Russian Oil Imports, Says Senator Graham

US Senator Lindsey Graham stated that India has "earned" a reduction in US tariffs by recalibrating its purchases of Russian oil, linking the new trade deal to geopolitical pressure on Russia. The announcement followed a conversation between former President Donald Trump and Prime Minister Narendra Modi, where Trump claimed Modi agreed to stop buying Russian oil. A White House official confirmed the tariff relief is contingent on India ceasing, not just reducing, its Russian oil imports. Both leaders celebrated the agreement on social media, framing it as a step toward ending the war in Ukraine.

Key Points: US-India Trade Deal: Tariff Cut for Reduced Russian Oil

  • US cuts India's tariff to 18%
  • Deal linked to reducing Russian oil
  • Pressure tactic on Putin
  • Modi-Trump call seals agreement
4 min read

India "earned" tariff relief by recalibrating Russian oil purchases, claims US Senator Graham

US Senator Lindsey Graham links India's tariff relief to reduced Russian oil purchases. Trump and Modi announce new trade terms amid Ukraine war pressure.

"Through their behavior, India has more than earned this reduction. - Lindsey Graham"

Washington DC, February 3

US Senator Lindsey Graham on Monday claimed that India has "earned" the reduction in tariffs under the newly announced India-US trade deal, linking the move to the decrease in Russian oil purchases by New Delhi amid the ongoing war in Ukraine.

In a post on X, Graham praised US President Donald Trump's approach, suggesting that economic pressure on Russia's energy customers is beginning to have an impact, citing the recent trade deal with India in which Washington reduced tariffs on India to 18 per cent.

"Well played, President Trump. I think your message about ending this war--by having Putin's customers who prop up his war machine have to recalculate--is working," he said.

The Senator claimed that New Delhi's conduct had justified the tariff reduction, stating that the other nations would also "follow India's direction".

"Through their behavior, India has more than earned this reduction. I'm hoping that the other big nations that buy Russian oil will follow India's direction," Graham added.

Linking the trade decision to broader geopolitical objectives, Graham said Russian President Vladimir Putin would only come to the negotiating table when pressure is intense.

"Putin will only come to the table when the pain is so great. We're not there yet, but with India's actions, we are moving closer. End the bloodbath in Ukraine now," he said.

His remark comes after Trump, earlier in the day, said that the US and India "have agreed to a trade deal" with Washington reducing the reciprocal tariff from 25 per cent to 18 per cent "out of friendship and respect" for PM Modi.

In his Truth Social post, Trump referred to his conversation with PM Modi earlier in the day, noting that the Prime Minister was one of his closest friends and a powerful, respected leader of India.

The US President also claimed that PM Modi had agreed to "stop buying Russian oil" and to buy much more from the US.

He further noted that India would reduce tariffs and non-tariff barriers against the US.

"It was an Honor to speak with Prime Minister Modi, of India, this morning. He is one of my greatest friends and, a Powerful and Respected Leader of his Country. We spoke about many things, including Trade, and ending the War with Russia and Ukraine. He agreed to stop buying Russian Oil, and to buy much more from the United States and, potentially, Venezuela. This will help END THE WAR in Ukraine, which is taking place right now, with thousands of people dying each and every week! 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%. They will likewise move forward to reduce their Tariffs and Non Tariff Barriers against the United States, to ZERO," Trump's post read.

Following Trump's post, Prime Minister Narendra Modi, on X, said it was wonderful to speak with his "dear friend President Trump" and expressed delight that "Made in India products will now have a reduced tariff of 18%".

"Wonderful to speak with my dear friend President Trump today. Delighted that Made in India products will now have a reduced tariff of 18%. Big thanks to President Trump on behalf of the 1.4 billion people of India for this wonderful announcement," PM Modi wrote in a post on X.

Meanwhile, a White House official confirmed to ANI that Washington will also drop the additional 25 per cent tariff on Indian imports imposed due to New Delhi's purchase of Russian oil, noting that India has to "cease, not just reduce, Russian oil purchases."

When asked by ANI whether the tariffs on Indian imports would be lifted in exchange for reducing Russian oil purchases, the official said, "Yes, although the agreement is that India will cease, not just reduce, Russian oil purchases."

- ANI

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Reader Comments

P
Priya S
Good move by the government! Lower tariffs mean our products become more competitive abroad. This should create more jobs here. But I hope we are not completely cutting off Russian oil just because of US pressure. We need affordable energy for our growth. A balanced approach is key.
R
Rohit P
Senator Graham's statement is typical. The West always wants to dictate terms. India bought Russian oil because it was economical for our people. If the US wants to sell us oil, it needs to be competitive on price too. Trade should be mutually beneficial, not a tool for geopolitical leverage.
S
Sarah B
Interesting to see how global politics and trade are so intertwined. From an economic perspective, reducing non-tariff barriers is often more significant than just lowering tariffs. If this deal leads to smoother trade flows, it's a win for businesses on both sides.
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Vikram M
"Earned" is a strange word to use. We are a sovereign nation making pragmatic choices. The deal is good, but the narrative that we are being obedient students is incorrect. Our diplomacy has secured a good deal while (hopefully) maintaining multiple energy sources. Jai Hind!
K
Karthik V
Let's wait for the official details. The headline says "recalibrating" purchases, but the White House official says "cease". That's a big difference. We cannot afford to suddenly stop all Russian oil if it means higher prices for diesel and petrol. The common man will suffer.

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