US-India Trade Deal Announced: Tariffs Cut to 18%, India to Halt Russian Oil

"Since we have not seen any implementation guidance or details, we have to wait and see what that looks like. The US and India have been negotiating text-based agreements for many months, so a lot of these details have already been worked out by the two negotiators. Whether the terms remain the same or shift in the final stretch of the agreement is something we need to watch for," Biswal said.

Highlighting the diplomatic groundwork behind the talks, she added, "I think Ambassador Sergio Gor and Ambassador Vinay Mohan Kwatra have been working very diligently. It helps to have a US ambassador in India with a direct and personal relationship with the President. This builds confidence in the ability to communicate effectively and clearly about what's needed to get an agreement done."

Placing the negotiations in a broader geopolitical context, Biswal said, "India and the European Union announced a significant deal last week, which put some pressure on the US administration because the US also had a consequential agreement in the works, and it was important not to lose those gains."

Her remarks followed US President Donald Trump's announcement of a trade deal with India on Monday (local time), months after Washington imposed 50 per cent tariffs on Indian goods in August 2025. Unveiled on Trump's social media platform Truth Social, the deal outlines significant tariff cuts and includes claims that India would halt Russian oil purchases. Earlier, Trump had levied a 50 per cent duty on India, with 25 per cent tied to crude imports from Russia, as administration officials asserted that India's oil buying supported Russia's war efforts.

Confirming the development, Prime Minister Narendra Modi posted on X, "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. When two large economies and the world's largest democracies work together, it benefits our people and unlocks immense opportunities for mutually beneficial cooperation. President Trump's leadership is vital for global peace, stability, and prosperity. India fully supports his efforts for peace. I look forward to working closely with him to take our partnership to unprecedented heights."

Trump, in his Truth Social post, wrote, "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!"

Detailing the trade framework, Trump added, "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 Reciprorocal 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. The Prime Minister also committed to 'BUY AMERICAN,' at a much higher level, in addition to over $500 BILLION DOLLARS of US Energy, Technology, Agricultural, Coal, and many other products."

"Our amazing relationship with India will be even stronger going forward. Prime Minister Modi and I are two people that GET THINGS DONE, something that cannot be said for most. Thank you for your attention to this matter!" Trump said.

The US-India developments come days after India and the European Union formalised multiple agreements on January 27 in the presence of Prime Minister Modi, Ursula von der Leyen and Antonio Costa.

Notably, both sides also agreed on a strategy document titled 'Towards 2030 - A Joint India-European Union Comprehensive Strategic Agenda', reflecting the expanding scope of India-EU strategic cooperation.

Among the agreements exchanged was the political declaration on the conclusion of negotiations on the India-EU Free Trade Agreement, signed by Piyush Goyal and Maros Sefcovic.

The India-EU Security and Defence Partnership document was signed by Kaja Kallas and S Jaishankar, while the comprehensive framework on mobility was signed by Sefcovic and Jaishankar, underlining the wide-ranging and multifaceted nature of India-EU strategic cooperation.

- ANI