Chief Negotiator President Trump Brokers New India Deal with a Clause: “Dump Russian Oil!”

By The Blog Source

Following a phone conversation with Prime Minister Narendra Modi, President Trump declared on Monday that the United States and India had reached a new trade agreement that would lower U.S. tariffs on Indian goods to 18% and, in his words, secure a significant commitment from New Delhi to shift away from Russian oil. Trump characterized the accord as both an economic triumph for American companies and a geopolitical measure aimed at cutting off cash for Moscow’s conflict in Ukraine.

In a post on Truth Social, Trump said Modi decided to cease purchasing Russian petroleum and instead massively increase up energy imports from the United States, with Venezuelan oil also discussed as a possible option. “This will help END THE WAR in Ukraine,” Trump posted, suggesting that cutting Russia off from one of its major remaining oil clients would inflict a severe blow to the Kremlin as the conflict continues with growing deaths.

Trump has spent months urging India — one of the world’s top purchasers of Russian oil — to divest from Moscow, which has depended on cheap crude deliveries to counter the impact of Western sanctions. Despite repeated warnings, India kept importing nearly 1.5 million barrels per day, forcing Trump in August to slap sweeping 50 percent tariffs on Indian imports as leverage. With Monday's declaration, which represents a dramatic reversal of that dispute, Trump declared that the tariffs will be promptly removed upon Modi's request for relief.

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Beyond energy, Trump claimed that Modi pledged to "BUY AMERICAN" at a far larger level, encompassing more than $500 billion in American energy, technology, coal, agricultural products, and other items. Trump described the agreement as a significant step toward rebalancing trade between the two nations and said that India has promised to remove its own tariffs and non-tariff obstacles on American products.

Modi praised the decreased duties in a post on X, addressing to Trump as his “dear friend” and thanking him on behalf of India’s 1.4 billion people. He commended Trump’s leadership on global peace, security, and prosperity and said he looked forward to expanding the U.S.-India alliance to “unprecedented heights,” but his statement did not specifically reference Russia or confirm a date for terminating Indian imports of Russian oil.

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Energy logistics may be crucial to the outcome of the transaction. India’s refineries are geared to process the heavy, thick crude it has been buying from Russia, making Venezuela — which produces a comparable quality of oil — a feasible option alongside rising U.S. supplies. Trump announced last month that the United States aims to sell between 30 and 50 million barrels of sanctioned, high-quality oil at market pricing.

China is the world’s top importer of Russian crude, and while Trump has not placed tariffs on Beijing over those imports, he intimated over the weekend that China would be welcome to make its own arrangement connected to Venezuelan oil.

For Trump, the India pact fits perfectly into his wider economic and foreign policy approach: exploit American market access and energy supremacy to extract concessions, consolidate friends, and push enemies. As he put it succinctly, he and Modi are “two people that get things done” – a striking contrast to presidents who talk tough on trade and war but, in his account, fail to produce results.

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