Trump Announces Modi’s Commitment on Russian Oil
Former President Donald Trump told reporters on Wednesday that Indian Prime Minister Narendra Modi has pledged to stop purchasing Russian oil, according to reports. The announcement came during a press briefing where Trump revealed that Modi made this commitment during a phone conversation earlier that day.
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Sources indicate this development could significantly ease trade tensions between the two nations that have been mounting since August. Washington had imposed an additional 25% tariff on top of Trump’s existing 25% reciprocal tariff, creating substantial barriers for Indian exports.
Trade Implications and Tariff Relief
The report states that Modi’s assurance may unlock critical tariff relief from Washington and break the deadlock in trade negotiations that has persisted since summer. Analysts suggest this could be particularly significant given that many Indian exports to the US currently face combined tariffs of 50%.
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According to the analysis, while several major US trading partners have successfully negotiated deals to reduce punitive tariffs, India has until now failed to reach any agreement. The combination of reciprocal tariffs and additional duties imposed in response to petroleum purchases from Russia has positioned India among the countries most affected by Trump’s second-term trade policies.
Market Reaction and Implementation Timeline
The international oil benchmark Brent reportedly moved slightly higher following Trump’s comments, according to market observers. Trump acknowledged that Modi could not immediately cease all Russian oil purchases but indicated that “a process had started.”
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Broader Economic Context
Industry experts note that before Russia’s full-scale invasion of Ukraine, India imported minimal amounts of Russian crude oil but has since become its largest buyer. The potential shift in India’s energy procurement strategy occurs alongside other significant technological and economic developments.
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Current Exemptions and Future Negotiations
The report states that certain critical Indian industries currently receive exemptions from the reciprocal tariffs. Semiconductors, consumer electronics, and pharmaceuticals reportedly have carve-outs, though they may face different duty structures in the future.
According to trade analysts, the Modi administration’s commitment represents a significant diplomatic shift that could reshape global energy markets and bilateral trade relationships. The development comes as Trump expressed his intention to pursue similar commitments from other nations, specifically mentioning China during his remarks to reporters.
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