The United States has agreed to slash tariffs on Indian goods in exchange for India’s commitment to halt imports of Russian oil, with President Donald Trump announcing the deal following talks with Indian Prime Minister Narendra Modi. India, a significant buyer of Russian crude, has been importing approximately 1.5 million barrels daily, accounting for over a third of its total oil imports.

Under the agreement, India will replace Russian oil with imports from Venezuela and the US, although experts note this shift may take time due to Venezuela’s dilapidated oil infrastructure. The deal also involves India reducing tariffs on US goods to zero and removing non-tariff barriers, with a pledge to invest in American products.

The move came as the EU recently signed a free trade agreement with India, potentially impacting US business interests. The tariff reduction may significantly impact trade, with the US importing $95.5 billion in goods from India in 2025.