The United States has agreed to remove a separate 25 percent tariff imposed on Indian imports linked to New Delhi’s purchases of Russian oil, the White House announced on Monday as part of a broader trade agreement with India.

The move comes after Indian Prime Minister Narendra Modi pledged to halt purchases of Russian crude, a significant concession in U.S. efforts to isolate Moscow’s energy revenues amid the war in Ukraine.

Under the terms of the deal outlined by U.S. officials, Washington will also reduce its general reciprocal tariff on Indian goods from 25 percent to 18 percent, aligning India’s rate more closely with those applied to other major trading partners.

The rollback of the separate punitive tariff represents a significant shift from last year’s escalation, when the United States imposed additional duties on Indian products in response to continued Russian oil imports and longstanding trade imbalances.

President Donald Trump announced the changes in a social media post following a phone call with Mr. Modi, saying India had committed to stopping purchases of Russian oil and would significantly increase its imports of U.S. goods, including energy, technology and agricultural products.

The Indian leader expressed his appreciation for the tariff reduction, emphasising the importance of the partnership between the two nations and the benefits it could bring to bilateral commerce.

Administration officials indicated that the tariff adjustments are intended to strengthen economic ties while supporting U.S. foreign policy objectives related to the conflict in Ukraine.

By linking trade benefits to India’s energy decisions, the United States aims to reduce Moscow’s ability to sustain its military campaign through discounted oil sales.

Both governments described the agreement as a step toward deeper cooperation, though details of implementation and the timeline for India’s energy shift remain subjects of ongoing dialogue.