US and India Reach Trade Deal: Tariffs Cut, Oil Purchases Shift

US-India Trade Agreement Details

• 🎯 The US has agreed to a trade deal with India, cutting US tariffs on Indian goods from 50% down to 18%.
• 🤝 In exchange, India will lower its trade barriers and cease purchasing Russian oil.
• 💡 India is expected to buy over $500 billion worth of US energy, technology, agricultural, and other products.

Background and Context

• ⚠️ The deal follows months of tense trade negotiations between the two nations.
• 📈 Previously, the US had imposed a 25% duty on all imports from India over its purchases of Russian oil, which was on top of another 25% reciprocal tariff.
• 📉 Indian markets had been negatively impacted, performing as the worst-performing market among emerging nations in 2025 after tariffs were levied.

Shift in Oil Sourcing

• 🛢️ India will now purchase oil from the United States and potentially Venezuela, instead of Russia.
• 🔄 This shift aims to replace some of the Russian oil previously bought by India, the world's third-largest oil importer.
• 🇺🇸 The US had previously seized Venezuelan President Nicholas Maduro in a military raid, and Trump had teased a potential deal for India to buy Venezuelan oil.