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US slashes tariffs on Indian goods to 18% as New Delhi agrees to halt Russian oil imports

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US President Donald Trump announced a landmark trade agreement with India on Monday, marking a significant shift in bilateral relations. Under the deal, the US will slash tariffs on Indian-origin goods from 50% to 18% in exchange for New Delhi halting its purchases of Russian oil and reducing long-standing trade barriers.

Trump unveiled the agreement via social media following a telephone conversation with Indian Prime Minister Narendra Modi. He further noted that India will transition its oil procurement to the US and potentially Venezuela.

A White House official told Reuters that the US has withdrawn a punitive 25% supplemental tax previously imposed on all Indian imports due to the country’s continued purchase of Russian crude. This levy had been applied on top of an existing 25% “reciprocal” tariff.

Following the announcement, shares of major Indian companies traded in the US surged. IT consultancy firm Infosys closed the day up 4.3%, while Wipro climbed 6.8%. HDFC Bank gained 4.4%, and the iShares MSCI India exchange-traded fund rose 3%.

The positive momentum from Trump’s announcement, combined with optimistic sentiment surrounding semiconductor manufacturers and artificial intelligence, helped propel major indices into positive territory during the trading session.

Trump also stated that Modi committed India to “BUY AMERICAN at a much higher level.” He added that India has pledged to purchase more than $500 billion in energy from the US, including coal, alongside commitments to acquire technology, agricultural products, and other goods.

“They will also reduce the tariffs and non-tariff barriers they apply against the US to ZERO,” Trump said of India’s commitments.

According to World Trade Organization (WTO) data, India maintained some of the highest tariffs globally before Trump returned to office and raised US tariff rates to double digits last year. India’s simple applied rate stood at 15.6%, while the effectively applied tariff rate was 8.2%.

Trump’s Truth Social post lacked critical specifics, such as the effective date for the reduced tariffs, the deadline for India to terminate Russian oil imports, the specific scope of the trade barrier reductions, and the exact list of US products India has committed to purchasing.

By late Monday, the White House had not yet issued the executive order or Federal Register notice required to formalize these changes.

While a White House spokesperson declined to provide additional details, India’s ministries of trade and foreign affairs did not immediately respond to inquiries sent after business hours. The Russian Embassy in Washington also did not immediately return requests for comment.

Previous agreements with other major Asian trading partners, such as Japan and South Korea, included specific investment commitments in US industries totaling hundreds of billions of dollars. However, the announcement regarding India made no mention of specific investment pledges.

Madhavi Arora, an economist at Emkay Global, noted that the deal generally brings India “in line with its Asian peers regarding tariff rates,” which range between 15% and 19%. She added that the agreement would likely alleviate the disproportionate pressure on Indian exports and the rupee.

Indian markets have been hit hard since Washington first implemented the heightened tariffs, becoming the worst-performing emerging market in 2025. This period saw record levels of foreign capital outflows.

US business groups responded to the announcement with a mix of caution and criticism. The US Chamber of Commerce, which has long advocated for a market-opening trade deal with India, characterized Trump’s statement as progress toward that goal.

“We are optimistic that this is the first step toward a more comprehensive trade agreement,” Chamber President Suzanne Clark said in a statement. “This deal will open doors to further increase private sector cooperation, and we look forward to reviewing the details.”

Conversely, “We Pay the Tariffs,” a coalition representing more than 800 small businesses, urged Americans not to celebrate the deal. The group described the agreement as a “600% tax increase for American businesses compared to 2024.” The coalition pointed out that US tariffs on Indian imports were approximately 2% to 3% at that time, whereas they will now stand at 18%, with the potential to rise further if India does not fully decouple from Russian oil.

Modi expressed his enthusiasm on X, stating, “It was great to speak with my dear friend President Trump today. I am pleased that ‘Made in India’ products will now face a tariff reduced to 18%.” He added, “A big thank you to President Trump on behalf of the 1.4 billion people of India for this great announcement.”

Indian Commerce Minister Piyush Goyal stated that the agreement would bring the US and Indian economies closer together.

“This agreement creates unprecedented opportunities for farmers, MSMEs, entrepreneurs, and skilled workers, in line with the vision to Make in India for the world, Design in India for the world, and Innovate in India for the world,” Goyal posted on X. “It will also assist India in acquiring technology from the US.”

The announcement comes less than a week after India signed a long-awaited trade agreement with the European Union. That EU deal is expected to eliminate or reduce tariffs on 96.6% of traded goods by value, though it excluded EU tariff reductions on soybeans, beef, sugar, rice, and dairy.

The Trump administration is moving quickly to finalize framework agreements with major trading partners ahead of a pending US Supreme Court decision on whether to overturn the “reciprocal” tariffs Trump implemented under the International Emergency Economic Powers Act.

Administration officials said last month that they reached an agreement with Taiwan and expect such deals to continue regardless of the court’s ruling. Officials claim that even if the court issues an annulment, the tariffs would be reimposed under alternative legal authorities.

On Saturday, Trump hinted at a potential deal for India to purchase Venezuelan oil following a US military raid in early January that resulted in the abduction of Venezuelan President Nicolas Maduro.

This trade breakthrough follows months of tense negotiations between the world’s two largest democracies.

Last August, Trump increased taxes on Indian imports to 50% in an effort to force New Delhi to abandon Russian oil. Earlier this month, he warned that the rate could increase again if India failed to curb its purchases.

Venezuelan oil acquisitions could help India, the world’s third-largest oil importer, substitute a portion of the crude it currently sources from Russia.

India is heavily dependent on energy imports, sourcing approximately 90% of its needs from abroad. Following the 2022 Russian invasion of Ukraine and subsequent Western sanctions on Russian energy, discounted Russian crude helped India lower its import costs.

However, India has recently begun to slow its Russian oil intake. Purchases in January stood at approximately 1.2 million barrels per day (bpd); this is expected to drop to approximately 1 million bpd in February and 800,000 bpd in March.

Diplomacy

US drafts Ukraine plan with Nord Stream restart and sanctions relief

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Draft proposals by the US administration to end the war in Ukraine envisage establishing a demilitarised line in the Donbass region, easing sanctions against Moscow, and offering a comprehensive investment package to Kyiv.

According to a report by the British magazine The Economist, citing Ukrainian officials, Washington is working on a broad framework comprising both economic and political points to persuade the parties to reach a settlement.

Under the draft plan reported by the publication, Russia is offered the opportunity to conclude trade agreements with the US, an easing of sanctions, and the normalisation of political relations.

Ukraine, in exchange for relinquishing its goal of NATO membership, is promised direct foreign investment and European Union accession.

The report notes that Ukrainian officials do not possess complete visibility over every detail of the final text on the table, but are closely familiar with its overarching framework.

Nord Stream pipeline and natural gas shipments on the table

The Economist reported that the package designed to persuade the leadership in Moscow also includes items such as the resumption of Russian natural gas sales to the European market and the reactivation of the Nord Stream pipeline.

The magazine also points out that decisions regarding the operation of a pipeline located on European territory do not fall directly under US jurisdiction.

Ukrainian negotiators, meanwhile, are concerned that the Washington delegation may lock in commercial agreements in line with its own economic interests before the fighting formally stops.

Speaking to the magazine, a Ukrainian official summed up the American side’s approach with the words: ‘Why wait and waste time? Time is money.’

Diplomatic contacts intensify at leadership level

Stating that it is ready for talks, the Russian government announced that an agreement had been reached in recent contacts with Washington to launch a trilateral negotiation process that would also include Ukraine.

Russian President Vladimir Putin said: ‘The objective of these negotiations will be to address the issue of ensuring the security of Ukraine and Russia once peace agreements are reached.’

As part of these diplomatic efforts, US President Donald Trump’s special envoy, Steve Witkoff, met Russian leader Putin on 21 October at the Konstantinovsky Palace in St. Petersburg.

Speaking during the portion of the meeting open to the media, Witkoff noted that he had brought documents outlining a pathway to peace and asked Putin to examine these texts.

Kremlin spokesperson Dmitry Peskov announced that the president would evaluate the American proposals.

Noting that concrete ground for a ceasefire had emerged during the St. Petersburg meeting, Witkoff expressed hope for the start of trilateral contacts between Russia, the US, and Ukraine to address technical matters.

Putin thanked Trump for his interest in peace efforts and recounted that the US president had specifically emphasized during their recent telephone calls that the war must end as soon as possible.

Framework prepared in Oslo carried to Moscow

Immediately before his visit to St. Petersburg, Witkoff had attended talks held on 20 October in Oslo, the capital of Norway.

Trump’s son-in-law Jared Kushner joined the meeting remotely due to illness, which was attended by Ukrainian President Volodymyr Zelenskyy, Finnish President Alexander Stubb, and Norwegian Prime Minister Jonas Gahr Store.

According to information provided by Stubb, the parties at the Oslo meeting clarified key security and economic elements that the American envoy would present to Moscow. Air defence systems, energy infrastructure, and partial ceasefire measures were also discussed.

Commenting after the talks in St. Petersburg, Russian presidential aide Yury Ushakov argued that the newly presented approaches did not contain many elements useful for a resolution.

Noting that Witkoff informed Putin about the contacts in Oslo and relayed fresh nuances in the positions of European leaders and the Kyiv government, Ushakov stated that the meeting was thorough and frank, adding that the conflict is ‘moving toward an end.’

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South Korea pulls part of embassy staff from Ukraine amid POW dispute

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The South Korean government has decided to withdraw part of its embassy staff from Ukraine.

According to the Yonhap news agency, Foreign Ministry spokesman Park Doo-sun cited the Kyiv administration’s failure to take “positive steps” in the dispute that began with the leak of information concerning the handover of North Korean prisoners of war as the justification for the move.

The spokesman also listed the ongoing threat of air strikes, which complicates the safety of diplomats, among the reasons.

Following the withdrawal of part of the personnel, essential diplomatic contacts will continue under the leadership of the charge d’affaires ad interim to Ukraine. All consular staff tasked with protecting South Korean citizens will remain in Ukraine.

Prior to this move, the Seoul administration decided on 8 October to withdraw its ambassador. The Foreign Ministry stated at the time that it was ready to continue consultations with Kyiv to resolve the emerging issues constructively.

Tensions between the two countries began with a speech delivered by Ukrainian President Volodymyr Zelenskyy at the United Nations General Assembly in September.

Zelenskyy announced that two captured soldiers from the North Korean army had been handed over to South Korea.

South Korean President Lee Jae-myung, meanwhile, accused Kyiv of breaching a confidentiality agreement.

Lee said the disclosure of this information endangered the prisoners’ families and stability on the Korean Peninsula.

Seoul expects a public apology

Dmytro Lytvyn, an adviser to the Ukrainian president, denied the existence of a confidentiality agreement.

The South Korean Foreign Ministry summoned Ukrainian Charge d’Affaires Andriy Veshkin on 28 September and issued a note of protest against Lytvyn’s remarks.

President Lee Jae-myung warned in a statement on 2 October that they would take additional measures against Kyiv if Ukrainian authorities did not acknowledge the agreement and make a public apology. Lee stated that Ukraine itself had initially requested that the transfer of the prisoners be kept confidential.

Ukrainian Foreign Ministry spokesman Heorhii Tykhyi said the dispute stemmed from differing interpretations of the confidentiality regime.

Tykhyi noted that Seoul, based on its constitution which recognises the entire Korean Peninsula as its own territory, requested that the prisoners be handed over “like its own citizens”.

Describing the handover as a “gesture of goodwill”, Tykhyi stated that they were conducting closed-door negotiations to resolve differences of opinion.

Ambassador Park Ki-chang returned to Seoul on 10 October. According to a report by The Korea Times newspaper citing the ministry, recalling the ambassador served as a diplomatic protest against the leak of information regarding the prisoners.

The newspaper wrote that South Korea had last taken a similar step in 2008 by withdrawing its ambassador to Japan.

Moscow warned foreign diplomats

On 3 October, the Russian Foreign Ministry reiterated its warning to foreign nationals, including diplomatic mission staff, against remaining in Ukraine.

The ministry recalled its advice to leave Kyiv, citing ongoing strikes against military targets.

The ministry noted that those who failed to heed the warnings would bear responsibility for the potential consequences.

Kremlin spokesman Dmitry Peskov said in a statement on 24 September that they had no information regarding Kyiv handing over two North Korean prisoners of war to Seoul.

Peskov, noting that prisoner matters fall under the authority of the Defence Ministry and intelligence services, said, “Contacts through the special services are continuing.”

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Ex-BND head Hanning tied to former Mossad chief amid spy inquiry

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August Hanning, who led Germany’s Federal Intelligence Service (BND) between 1998 and 2005, was arrested on 6 October on allegations that he obtained roughly 2,000 classified agency documents and used them during contacts with intelligence officers from a foreign state.

Accused of high treason and espionage on behalf of a foreign intelligence agency, the former spy chief is alleged to have procured the documents from former BND employee Manfred D.

Prosecutors stated that the leaked records included internal briefing notes presented to senior German officials, though the Berlin government has not yet publicly disclosed which country received the classified data.

According to an exclusive report by Jake Green for The Cradle, seized email exchanges revealed extensive ties between the arrested Hanning and former Mossad director Danny Yatom.

The correspondence shows that the two former intelligence directors built an ongoing network of contacts following their public service, combining commercial ventures, efforts to secure political influence, and intelligence links.

This dynamic has triggered debate that using personal connections and official access for private gain has left Germany’s intelligence apparatus vulnerable.

Intelligence notes for 10,000 euros and campaign proposals

According to the reviewed emails, Hanning told Yatom in a 2018 message that he could prepare an “overall assessment based on information obtained from senior German officials and intelligence agencies” concerning an unidentified candidate.

The former BND head committed to completing the report by 13 July in exchange for 10,000 euros.

Contacts between the two men subsequently expanded to cover domestic political processes in Germany. Ahead of the September 2021 federal election, Yatom asked Hanning to approach leading candidates.

Describing CIY Global as a “political campaign company”, the former Mossad chief noted that he aimed to introduce its capabilities to German politicians, and he mentioned his intention in the same exchange to transfer documents concerning a cybersecurity firm.

Cybersecurity partnership and surveillance operations across Europe

The partnership between Yatom and Hanning reached beyond political lobbying initiatives into the cybersecurity sector.

Hanning reportedly served as a consultant for World Health Energy Holdings, a cybersecurity company linked to Yatom.

Firms of this type, established or managed by former intelligence personnel, provide commercial platforms on the international market for Israeli-origin surveillance, cyber intelligence, and political influence capabilities.

The operational presence of private Israeli-based surveillance technologies across Europe has recently entered judicial records through scandals in Poland, Spain, and Greece.

Polish prosecutors announced on 12 October that data collected under the previous government via Pegasus spyware against political opponents had been transferred out of the country, adding that manufacturer NSO Group maintained access to the technical infrastructure.

In Spain, the 2022 CatalanGate investigation established that at least 65 people, including politicians, lawyers, and civil society representatives, were targeted using Pegasus or Candiru software, with Citizen Lab researchers publishing strong evidence linking the operation to Spanish authorities.

In Greece, the surveillance operation targeting journalist Thanasis Koukakis and Member of the European Parliament Nikos Androulakis was determined to have used Predator software, linked to Intellexa, a company founded by former Israeli intelligence officer Tal Dilian.

In the German espionage investigation, the traffic between Hanning and Yatom involving paid reporting, contacts with electoral candidates, and commercial partnerships does not yet provide conclusive legal evidence regarding the final destination of the roughly 2,000 classified documents.

Nevertheless, the disclosed correspondence gives German investigators a concrete line of inquiry to assess whether classified state secrets reached commercial networks tied to Israeli intelligence.

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