Diplomacy
US slashes tariffs on Indian goods to 18% as New Delhi agrees to halt Russian oil imports
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A White House official told Reuters that the US has withdrawn a punitive 25% supplemental tax previously imposed on all Indian imports due to the country’s continued purchase of Russian crude.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
CSTO strips Armenia of voting rights over two-year budget debt
Members of the Collective Security Treaty Organization (CSTO) have stripped Armenia of its voting rights and its ability to appoint representatives to official positions due to a two-year debt to the organization’s budget.
Kremlin Spokesman Dmitry Peskov said, “This decision was taken based on the organization’s charter due to Armenia’s failure to fulfil its obligations for several years.”
Prior to the CSTO leaders’ summit in Moscow, Peskov had stated that member states would “react” to the Caucasus country’s non-participation in the organization’s activities.
Ahead of the Moscow summit, Armenian Prime Minister Nikol Pashinyan said his country’s “interest has run out” regarding the CSTO. Through his press spokesperson, he announced that he would travel to Türkiye on 11 November to attend the United Nations Climate Change Conference (COP31) instead of going to Russia.
The CSTO leaders’ meeting was held with the participation of Russian President Vladimir Putin alongside the leaders of Belarus, Kazakhstan, Kyrgyzstan, and Tajikistan.
The leaders jointly took the decision to revoke Armenia’s voting rights.
At the conclusion of the meeting, the participants also signed a joint declaration.
The declaration stated: “We confirm our unconditional commitment to the goals set out in the CSTO treaty and charter towards creating favourable and stable conditions for the comprehensive development of member states.”
Pashinyan had frozen Yerevan’s de facto participation in the CSTO in February 2024, citing the organization’s failure to aid the Armenian side during the armed clashes in Nagorno-Karabakh in September 2023.
Having referred to the CSTO as a “soap-bubble alliance” since that time, Pashinyan accused the organization’s members of “planning war” together with Baku. He stated that Armenia would not return to active work within the alliance at least “over the next five years”, adding that he would welcome it if the country were expelled from membership.
Relations between Armenia and Russia grew tense once again in the spring of 2026, after Yerevan moved closer to the European Union (EU) and the Kremlin responded with a trade war.
In May, Pashinyan refused to travel to Moscow to attend the Victory Day parade and declared that he did not support Russia on the Ukraine issue.
In response, Putin called on Yerevan to determine its foreign policy course through a referendum, advising Armenian authorities not to forget the fate of Ukraine.
Diplomacy
US urges Russia to draft proposals for new European security pact
The US administration has reportedly called on Russia to submit proposals for a prospective security treaty with Europe that would include measures to ease tensions between European nations and Moscow.
According to a report by news site Axios citing sources familiar with the matter, the US side conveyed the request during trilateral negotiations held in Abu Dhabi.
During the talks, US Special Envoy Steve Witkoff and Donald Trump’s son-in-law Jared Kushner suggested that the Russian delegation prepare a fresh proposal outlining its security concerns and demands.
The US delegation reportedly asked that this proposal clarify what kind of “symmetrical steps” Moscow is prepared to take to de-escalate tensions and “provide non-aggression guarantees to Europe”.
Another source familiar with the White House’s approach said the Trump administration aims to run the processes for a new European security architecture and a peace agreement between Russia and Ukraine simultaneously.
Under this plan, the actual implementation of the security understandings would take effect only after the signing of an accord ending the conflict in Ukraine.
Assessing the approach to the process, the source said: “[Ukrainian President Volodymyr] Zelenskyy will not agree to any compromise without knowing what will happen next regarding security guarantees. Putin also wants to see the exact same picture clearly. This is precisely why the security portfolio is so decisive.”
The same official noted that the US will not reach a security agreement with Russia without the support of Europe and Ukraine, adding that Washington will not grant Moscow veto power over European security decisions.
Vladimir Medinsky, aide to the Russian president and head of the delegation in the Ukraine negotiations, previously stated that the fundamental objective was building a comprehensive new security system in Europe.
Medinsky noted that the structure in question must take on the character of “a fair, new, modern Yalta and Potsdam that carries the spirit of Helsinki 1975 and responds to contemporary realities”.
The Russian official argued that if such a system were established, peace lasting for decades, or even centuries, could be secured in Europe.
Russian Foreign Minister Sergey Lavrov also announced that Moscow possesses its own position paper on how a new security architecture in Eurasia should take shape.
Lavrov stated that Russia hopes the Washington administration will “maintain its determination to pursue dialogue aimed at achieving an honest balance of interests where nobody’s security is impaired”.
Russian authorities have repeatedly stated that the country has no intention of attacking Europe.
Pointing out that they have no reason to fight NATO countries, Russian President Vladimir Putin previously said: “We have no interest whatsoever, neither geopolitical nor economic, political nor military.”
In a statement in October, Putin said Russia has no plans to attack anyone “in 2029, in 2030, or in the year 2050”.
On the other hand, Putin claimed that “all NATO countries are fighting Russia” and stated that the Russian military is currently the most combat-ready armed force in the world.
Following the contacts in Abu Dhabi, Kushner announced that he and Witkoff would travel to Moscow.
Explaining that they plan to meet Putin during the visit to discuss European participation in negotiations aimed at resolving the conflict, Kushner argued that the parties could make “far greater progress” if the Russian leader consents to such involvement.
Yury Ushakov, aide to the Russian president, stated that the US special envoys will arrive in Moscow on 12 November, with the planned meeting with the Russian president scheduled for the first half of the day.
Diplomacy
Vance leads indirect push for US-Iran ceasefire and nuclear talks
US Vice-President JD Vance has been personally involved over the past two weeks in indirect talks with Iran aimed at securing a fresh ceasefire and restarting nuclear negotiations.
According to Axios, Vance’s intense engagement indicates that he has taken it upon himself to extract the US from the conflict, which he views as responsible for the Republican Party’s shocking losses in this week’s elections.
This elevates the latest round of indirect talks to the highest echelons of the administration.
US officials and regional sources state that Trump is currently willing to let diplomatic efforts run their course to see whether any agreement is achievable.
Asked by reporters on Friday what his message was to Iran, Trump said, “We are talking to them.”
According to sources with direct knowledge of the matter, Vance speaks almost daily with Qatari Prime Minister Sheikh Mohammed bin Abdulrahman Al Thani, Pakistan’s Chief of Army Staff Field Marshal Asim Munir, and other mediators regarding the negotiations with Iran.
White House envoy Steve Witkoff and Jared Kushner, President Trump’s adviser and son-in-law, are also involved in the process.
Sources say Vance and the Qatari and Pakistani mediators have been discussing the possibility of holding a working-level technical meeting between the US and Iran in the coming days, though this has not yet materialized.
Before the war began in late February, Vance was among the most sceptical voices in Trump’s inner circle on the issue, advocating instead for a diplomatic solution.
In April, he led the US negotiating delegation at the Iran summit held in Islamabad and was personally involved in the talks that yielded a memorandum of understanding (MOU) signed between the US and Iran in June.
Vance subsequently headed the US delegation during a series of direct talks with Iran in Switzerland.
Two weeks ago, Vance sent a letter to Mohsen Rezaei, Secretary of Iran’s Supreme National Security Council, proposing that direct negotiations resume.
Rezaei is one of the closest advisers to Iran’s Supreme Leader, Mojtaba Khamenei.
Iranian officials noted that Vance’s letter generated positive momentum toward restarting talks.
On Wednesday, Vance said the war was the primary reason for the Republicans’ repudiation at the polls.
Sources involved in mediation efforts report that while progress is being made, the process is moving very slowly.
On Friday evening, the prime minister of Qatar said, “Over the past few weeks, we worked with our colleagues in the US administration who have a sincere intention to contain the situation and de-escalate. Thanks to them and the voices of reason in Tehran, we prevented the situation from spinning out of control.”
The prime minister added that discussions with the Trump administration continued following the midterm elections, though they were not as active as in previous days “because there are other matters.”
Nevertheless, he noted that the US intention to find a diplomatic resolution “remains ongoing” and emphasized that an agreement is possible.
On Friday morning, Trump and the Emir of Qatar discussed Qatari efforts to bridge differences between the US and Iran as part of an accord.
According to a statement from his office, Sheikh Tamim emphasized the necessity of “pursuing dialogue and diplomatic channels to resolve differences, prevent the region from facing further escalation, and ensure freedom of maritime navigation as well as the security of energy supplies.”
Separately, Trump confirmed on Friday that the US military conducted a strike on an anti-aircraft missile launcher on Qeshm Island in the Strait of Hormuz after it fired a missile at a US fighter jet.
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