U.S. President Donald Trump announced on Monday, February 2, to reduce U.S. tariffs on Indian goods after India agreed to halt purchases of Russian oil.

This marks a victory for the Trump administration, which has been pressuring allies for years to economically isolate Russia over its war in Ukraine.

In his statement, Trump announced 18% reduction in tariffs from a combined rate of 50%.

In exchange, Indian Prime Minister Narendra Modi agreed to stop purchasing Russian crude oil.

On his Truth Social platform, Trump wrote, “This will help END THE WAR in Ukraine.”

Additionally, he stated that India will reduce its import tariffs on U.S. goods by 0% and purchase $500 billion in U.S. products.

Indian Prime Minister also exchanged words on social media, calling Trump’s leadership “viral for global peace” and shared his deep desire to take India-U.S. ties to “unprecedented heights.”

Previously, both countries had months of strained relations over this issue.

Last summer, Trump announced 25% tariffs on Indian goods, referring to an imbalanced trade relationship and India’s refusal to stop Russian oil imports.

In August, Trump imposed an additional 25% tariff to punish India for its continued energy purchases from Russia.

The U.S.-India deal comes days after the European Union agreed to a free trade agreement with India, highlighting a significant global shift in trade partnerships. 

• India will buy more oil from US, Venezuela, says Trump.
• PM Modi thanks Trump for reducing tariffs on Indian products.
• Modi pledges to buy over $500bn worth of US products: Trump.
  

US President Donald Trump on Monday said he had agreed on a trade deal with India that slashes US tariffs on Indian goods to 18% from 50% in exchange for India lowering trade barriers, stopping its purchases of Russian oil and buying oil instead from the US and potentially Venezuela.

“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, whereby the United States will charge a reduced Reciprocal Tariff, lowering it from 25% to 18%,” Trump said in a social media post following a call with Indian Prime Minister Narendra Modi.

A White House official told Reuters that the US was rescinding a punitive, 25% duty on all imports from India over its purchases of Russian oil that had stacked on top of a 25% “reciprocal” tariff rate.

Modi also committed to buy more than $500 billion worth of US energy, technology, agricultural and other products, Trump added.

“Wonderful to speak with my dear friend President Trump today. Delighted that Made in India products will now have a reduced tariff of 18%,” Modi said in a social media post on X. “Big thanks to President Trump on behalf of the 1.4 billion people of India for this wonderful announcement.”

US-listed shares of major Indian companies rallied on the news. IT consulting firm Infosys was up 3.53% in afternoon trading, consultancy Wipro rose 7%, HDFC Bank gained 3.4% and the iShares MSCI India exchange-traded fund rallied 3.3%.

On Saturday, Trump teased a potential deal for India to buy Venezuelan oil after the US seized Venezuelan President Nicolas Maduro in a military raid in early January.

The deal comes after months of tense trade negotiations between the world’s two largest democracies.

Last August, Trump doubled duties on imports from India to 50% to pressure New Delhi to stop buying Russian oil, and earlier this month said the rate could rise again if it did not curb its purchases.

Purchases of Venezuelan oil would help replace some of the Russian oil bought by India, the world’s third-biggest oil importer.

India relies heavily on oil imports, covering around 90% of its needs, and importing cheaper Russian oil has helped lower its import costs since Moscow invaded Ukraine in 2022 and western nations slapped sanctions on its energy exports.

Recently India has begun to slow its purchases from Russia. In January, they were around 1.2 million barrels per day, and are projected to decline to about 1 million bpd in February and 800,000 bpd in March, according to a Reuters report.

Indian markets have been battered since the tariffs were levied by Washington, making it the worst-performing market among emerging nations in 2025, with record outflows of foreign investors.

Welsh singer, a much loved artist who left an impact on the industry, has passed away after spending more than 60 years in music.

Tony Jones, best known as one half of the famous duo Tony and Aloma, has died at the age of 86.

Tony was a familiar and cherished name in Welsh music and for decades, he performed all over Wales and other places as well, appearing in cabaret shows, television programmes and live concerts.

However, Tony and Aloma became hugely popular during the 60s and 70s, winning the hearts of fans with their music.

The duo sold more than 100,000 albums and were known for hit songs including Mae Gen i Cariad and Dim Ond Ti a Fi.

After eight years apart, Tony and Aloma reunited back in the mid 1980s, bringing joy to fans who followed their journey for years.

Aloma, meanwhile, shared an emotional message through a family member, saying: “Thanks you all for your sympathy and your kind words, without you all there would be no Tony and Aloma.”

Musicians Iona and Andrew Boggie also paid tribute, calling him “a great songwriter, a wonderful voice and a very lovely person.”

Furthermore, Sain record company described Tony as “a friend of Sain for decades” and thanked him for lasting contribution to Welsh music.