President Donald Trump announced on Monday that he would lower tariffs on Indian goods in exchange for promises to stop buying Russian oil, among other things.
That would be a difficult task. India continues to import about 1.5 million barrels of Russian crude oil every day, months after President Trump imposed tariffs on Indian goods as punishment. Kuplera global trade data provider.
President Trump said in a social media post that he spoke with Indian Prime Minister Narendra Modi on Monday morning, and that Modi had agreed to replace oil imports from Russia with oil from Venezuela and the United States. Venezuelan oil is of the same quality as Russian oil, being heavy and sour, making it ideal for producing fuel oil and derivatives such as diesel.
However, it is unclear how long that transition will take. Venezuela’s oil infrastructure is aging and it will take about a decade of work and tens of billions of dollars in investment to restore production to the more than 3 million barrels per day it achieved before the socialist government took over in 1999.
President Trump said Indian goods would immediately be subject to an 18% tariff, down from 50%. The tariffs included a 25% tariff that President Trump introduced in August to persuade India to stop buying Russian crude oil. A White House spokesperson told CNN that President Trump will completely eliminate additional tariffs and lower so-called reciprocal tariffs.
India is a major buyer of Russian oil but is under sanctions from most Western countries due to Russian President Vladimir Putin’s war with Ukraine. China buys far more Russian crude than India, and unlike India, China does not face additional tariffs on its purchases of Russian crude.
Indian government officials have previously defended the purchase of Russian oil, saying it is essential to the country’s energy security.
Trump also called Modi “one of my greatest friends” and said the Indian prime minister had agreed to reduce India’s tariffs on U.S. goods to zero and eliminate unspecified non-tariff barriers. Trump did not explain which barriers would be eliminated, but they often include special taxes on services for U.S. companies and value-added taxes on goods.
Trump also said India has committed to investing “at a much higher level” in American products, in addition to $500 billion in U.S. investments in energy, technology, agriculture, coal and more.
Although India is not the United States’ largest trading partner, lower tariffs could still have a significant impact. According to the U.S. Census Bureau, the U.S. imported $95.5 billion in goods from India as of November 2025, or 3% of its total imports, and exported $42 billion in goods to India during that time.
Some of the major products that the United States imported from India last year included electronic equipment such as computers and telephones, medicines, clothing, and chemicals. U.S. jewelry prices have been rising in recent months, due in part to tariffs on India. Meanwhile, India’s top imports from the US were oil, gas, aircraft, and aircraft parts.
Beyond goods, American companies are increasingly dependent on India. Companies like American Express, JPMorgan Chase & Co., Microsoft and Google have deepened their presence in India, hiring workers there instead of sponsoring visas to work in the U.S. and even opening new offices in the country.
This is a developing story and will be updated.
CNN’s Elizabeth Buchwald and Matt Egan contributed to this report.