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News India Live, Digital Desk: Tariff for India reduced after phone conversation between US President Donald Trump and PM Narendra Modi reduced from 50% to 18% Has been done. This is a big economic victory for India, but some of Trump’s statements have created problems for New Delhi. Trump claims that India is now will stop buying oil from Russia and expand its market to American products ‘Zero Tariff’ But will open. These two conditions may prove to be a ‘double-edged sword’ for India.
First Front: ‘All weather’ friendship with Russia under fire?
Trump has publicly said that PM Modi has agreed to stop purchasing oil from Russia.
Russia’s displeasure: India is currently close to its needs 35-40% oil Buying from Russia at concessional rates. If India suddenly stops buying oil, there could be a rift in the decades-old ‘India-Russia’ strategic friendship.
oil prices: Buying oil from America instead of Russia may be expensive, due to which there is a risk of increasing the prices of petrol and diesel in India. Russia is also India’s most trusted defense partner, so this ‘friendship’ is at stake.
Second Front: ‘Make in India’ and the crisis facing farmers?
Trump’s second big claim is that India will reduce its tariffs on American products (especially agriculture and dairy). Zero (0%) Will do it.
Threat to local industries: If American agricultural products, dairy and technology come to India without any taxes, it will be impossible for local farmers and MSME industries to compete with them.
Self-reliant India vs America First: PM Modi’s ‘Self-reliant India’ campaign and Trump’s ‘America First’ policy seem to be clashing here. It will be a big challenge for the government to save the domestic market from the flood of American products.
Tariffs and the new equation of trade (February 2026)
| Situation | Before (by 2025) | Now (after the deal) |
|---|---|---|
| US Tariff (on Indian goods) | 50% (including penal) | 18% |
| buy russian oil | About 1.5 million barrels/day | Claim to reduce to ‘zero’ |
| Indian Tariff (on US goods) | Higher Rates (Reciprocal) | Commitment to zero (0%) |
Experts’ opinion: ‘Caution is necessary’
Diplomatic experts believe that India has not yet officially confirmed the closure of Russian oil or zero tariff. PM Modi has only welcomed ‘tariff cuts’. This means that India ‘Strategic Autonomy’ wants to maintain, but Trump’s public pressure has brought India to a difficult crossroads.
