U.S. President Donald Trump announced Monday that his administration will lower tariffs on goods imported from India to 18%, down from 25%, following Indian Prime Minister Narendra Modi’s agreement to stop buying Russian oil. The decision marks a significant shift in U.S.-India trade relations amid Trump’s broader strategy to reshape global economic and geopolitical alignments.

The announcement came after months of Washington pressuring New Delhi to reduce its dependence on discounted Russian crude, a key revenue source for Moscow since the Ukraine war began in February 2022. According to ABC News, U.S. officials believe India’s decision could tighten financial pressure on Russia and potentially accelerate efforts to end the conflict.

Trump revealed on Truth Social that India will also begin to eliminate import taxes on American goods, pledging to purchase up to $500 billion worth of U.S. products. “This will help END THE WAR in Ukraine, which is taking place right now, with thousands of people dying each and every week!” he wrote.

Responding on X, Modi said he was “delighted” by the tariff reduction, praising Trump’s “leadership” as essential for global peace and stability. “I look forward to working closely with him to take our partnership to unprecedented heights,” Modi added.

Trump’s rapport with Modi has been a defining feature of his foreign policy but has faced strain amid disagreements over trade and India’s oil dealings with Russia. Despite those tensions, the two leaders now appear to be recalibrating ties in a way that aligns economic cooperation with strategic objectives in Ukraine.

The deal also comes as Trump’s special envoy, Steve Witkoff, and son-in-law Jared Kushner are set to meet Russian and Ukrainian representatives in Abu Dhabi later this week to explore a possible framework for ending the war.

In June 2025, Trump imposed a 25% tariff on Indian goods over trade imbalances and limited U.S. market access. Two months later, he increased the rate by another 25% in response to India’s continued purchases of Russian oil , bringing the total to 50%. The new tariff rollback signals both a diplomatic breakthrough and a calculated move in Trump’s push to “reshape global trade for peace.”

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