India stops buying Russian oil, US lowers tariffs on its goods

The United States and India have concluded a trade agreement that significantly reduces US tariffs on Indian goods. US President Donald Trump announced that the US will reduce reciprocal tariffs from the original high rates to 18 percent in exchange for concessions from New Delhi. India is to commit to reducing trade barriers, limiting purchases of Russian oil, and increasing energy imports from the US and possibly Venezuela.

The White House confirmed that Washington is also lifting additional punitive tariffs imposed on Indian purchases of Russian oil. Prime Minister Narendra Modi welcomed the agreement and emphasized its importance for the Indian economy and trade relations with the US.

According to Trump, India has committed to purchasing more than $500 billion worth of US energy, technology, and agricultural products.

The agreement immediately boosted financial markets, with shares in large Indian companies rising significantly. It comes after months of tense negotiations and is intended to help India gradually replace Russian oil with other supplies.

(reuters, mja)