Trump Slashes US Tariffs on Indian Goods in Major Trade Policy Shift

Donald Trump has announced plans to sharply reduce US tariffs on Indian goods from 50% to 18%, a move closely linked to India’s ongoing purchases of discounted Russian oil. The decision marks a significant shift in US trade policy, combining economic diplomacy with geopolitical considerations around global energy markets.

India has become one of the largest buyers of Russian crude since Western sanctions were imposed following the war in Ukraine. By refining Russian oil and exporting fuel products to global markets, including the United States, India has increasingly contributed to stabilising energy supplies while benefiting from lower input costs. US officials have indicated that this dynamic is part of the rationale behind easing tariff pressures on Indian exports.

The proposed tariff reductions are expected to apply to a wide range of manufactured goods, enhancing India’s access to the US market and strengthening its role as a key economic partner. While the Trump administration has previously adopted a tough stance on trade protectionism, this move signals a more selective approach, using tariffs as leverage rather than imposing blanket penalties.

Supporters of the policy argue that engaging India economically helps sustain influence over a strategically significant partner without directly challenging its energy dealings with Russia. Critics, however, caution that the approach risks undermining sanctions enforcement by indirectly facilitating Russian oil flows through third countries.

The move underscores how trade, energy security, and geopolitics are becoming more interconnected, with tariff policy now influenced not only by economic factors but also by the realities of a fragmented global order.