The United States will reduce tariffs on Indian goods from 50% to 18%, and India agrees to stop purchasing Russian oil and instead buy American oil.

PANews February 3 News, U.S. President Trump announced a trade agreement with India. Under the agreement, the U.S. will significantly reduce tariffs on Indian goods from 50% to 18% in exchange for India lowering trade barriers, stopping purchases of Russian oil, and turning to buy oil from the U.S. and possibly Venezuela. Trump stated that Indian Prime Minister Modi pledged to substantially increase “purchases of American goods,” including energy, technology, and agricultural products worth over $500 billion.

According to the agreement, the U.S. will lift the previously imposed 25% punitive tariffs on Indian purchases of Russian oil. Additionally, Modi said that this agreement will allow “Made in India” products to enjoy lower tariffs, and he expressed gratitude to Trump.

Analysts believe this move will align India’s tariff levels with other Asian countries, helping to eliminate barriers to Indian exports and the rupee exchange rate. India’s Trade Minister also stated that the agreement will bring more development opportunities to the Indian economy.

It is worth noting that the details of the agreement have not been fully disclosed, including the specific timeline for tariff reductions and the list of American goods India has committed to purchase. Meanwhile, Trump also hinted that India might replace some Russian oil imports by purchasing Venezuelan oil.