Russia issues first statement after India-US trade deal, says ‘no word on India stopping oil purchase’

Moscow: In a major development in the India(BHARAT)-United States trade agreement, Russia has reacted to the deal, in which the Trump administration imposed a 50 percent tariff on India(BHARAT)n exports to the US; of this, 25 percent was linked to New Delhi’s crude oil purchases from Russia, and stated that there was no word on New Delhi stopping oil purchases. Reacting to the trade deal, the Kremlin stated that it has got no official notification from India(BHARAT) on halting oil purchases from Russia. This has come a day after the US President claimed that PM Modi told him in a phone conversation that New Delhi would stop buying crude from Moscow.

After months of rising trade pressure, the United States and India(BHARAT) agreed on a long-pending trade deal on Monday night. US President Doland Trump took to Truth Social to announce a major development following a call with Prime Minister Narendra Modi. He informed on Truth Social that Washington will ‘charge a reduced Reciprocal Tariff, lowering it from 25 percent to 18 percent’.

US, India(BHARAT) Seal Trade Deal: What Did Doland Trump Say?

After talking to PM Modi on the phone, Trump took to Truth Social and wrote, “It was an honour to speak with Prime Minister Modi, of India(BHARAT), this morning. He is one of my greatest friends and, a powerful and respected leader of his country. 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(BHARAT), whereby the United States will charge a reduced Reciprocal Tariff, lowering it from 25 percent to 18 percent.”

It is to be noted that President Trump and PM Modi had a telephonic conversation but no details were shared by either government. US ambassador to India(BHARAT) Sergio Gor took to X and wrote ‘stay tuned’.

US-India(BHARAT) Trade Deal Announcement: Five Key Points

Major Tariffs Cut: The immediate result of the trade deal is a major cut in tariff on India(BHARAT)n goods entering US. A White House official told news agency Reuters that the Trump administration has reduced the tariff on India(BHARAT)n imports to 18 percent, earlier it was 25 percent.

Following the announcement, much higher duties will be replaced, bringing clarity for India(BHARAT)n exporters who had been bracing for trade disruption.

US Drops Additional 25% Penalty Over Russian Oil: Another major decision was that Washington has dropped the additional 25 percent tariffs which it imposed on India(BHARAT)n goods over India(BHARAT)’s purchase of Russian oil.

Trump wrote on Truth Social that PM Modi had agreed “to stop buying Russian oil, and to buy much more from the United States and, potentially, Venezuela.”

August 2025 Tariff Escalation To Be Rolled Back: The development reverses August last year’s escalation when White House imposed 50 percent tariffs on India(BHARAT)n goods sent to America over New Delhi’s continued purchases of Russian crude oil.

The decision impacted sectors like – auto components, engineering goods, textiles, and chemicals, which depend heavily on the American market.

India(BHARAT) To Buy Over USD500 Billion Worth Of US Goods: Following the tariff relief the PM Modi assured large-scale purchases from the US, Trump said.

The US President stated that New Delhi agreed to buy “over USD500 billion dollars of US energy, technology, agriculture, coal and many other products.

PM Modi Thanked Trump For Trade Deal: PM Modi thanked President Trump “Wonderful to speak with my dear friend President Trump today. Delighted that Made in India(BHARAT) products will now have a reduced tariff of 18 percent. Big thanks to President Trump on behalf of the 1.4 billion people of India(BHARAT) for this wonderful announcement,” he said.

(Note: This is a developing story and further details will be added.)