India to Halt Russian Oil Purchases, Trump Cuts Tariffs to 18%

India and the US have reached a trade deal under which India has agreed to halt Russian oil purchases, and President Donald Trump has agreed to cut US tariffs on Indian imports from 25% to 18%. 

The Details: The trade deal, which was reached on Monday, would require India to "eliminate tariffs and non-tariff barriers" on American goods, and in return, the US would reduce tariffs on Indian goods to 18%. Trump had announced a 25% tariff increase on goods from India back in June after his administration felt the country had done little to narrow its trade surplus with America. The agreement to lower tariffs to 18% reportedly followed a phone call between Trump and Indian Prime Minister Narendra Modi.

Key Quotes: Trump wrote on Truth Social, "The Prime Minister also committed to 'BUY AMERICAN,' at a much higher level, in addition to over $500 BILLION DOLLARS of U.S. Energy, Technology, Agricultural, Coal, and many other products. Our amazing relationship with India will be even stronger going forward." Modi wrote on X, "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."

For Context: Trump has pressed India for months to cut its reliance on Russian crude oil, the price of which has fallen since Russia's 2022 invasion of Ukraine. In 2024, Russia supplied India with 1.8 million barrels per day, around 36% of its total imports. Europe imports about a quarter of its oil from India, and its imports have risen since the start of the Ukraine conflict. Reuters (Center bias) reported that European Union imports from India hit an all-time high in September.

How the Media Covered It: Fox Business (Lean Right) reported that Trump claimed India will buy oil from the US and maybe Venezuela to fill the hole left from Russian crude. Associated Press (Left) said the deal reflected India's desire to "reduce dependence" on the US in light of the disruption of established trade flows due to Trump's import tax hikes. Sources across the political spectrum noted that the agreement comes days after the European Union reached a free trade agreement with India that could affect as many as 2 billion people.

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