US-India Trade Agreement Reached, but Modi Avoids Discussing One Issue, Behind It Lies a Big Consideration!
Yesterday, the US and India reached a trade agreement, with the US reducing tariffs on Indian goods from 25% to 18%, and canceling the 25% punitive tariffs imposed due to India's purchase of Russian oil; India promised to reduce trade barriers against the US, stop purchasing Russian oil, and procure over $500 billion in US goods. Modi confirmed the agreement but avoided discussing oil purchases. Previously, the two sides had been stuck in trade negotiations for nearly a year due to India's energy cooperation with Russia.
The conclusion of the US-India trade agreement is a direct interest exchange where the US relaxed tariffs in exchange for India's shift in energy sources, and also represents India's strategic compromise between the US and Russia. In 2025, Russian oil accounts for more than 37% of India's imports, and low-cost Russian oil is key to stabilizing inflation. However, the US' 50% additional tariff has put pressure on India's economy and trade. Modi avoids discussing stopping the purchase of Russian oil, and the $50 billion procurement target far exceeds India's $41.5 billion in purchases from the US last year, showcasing India's diplomatic wisdom: it wants to take advantage of the US tariff benefits to boost exports, but does not want to cut the Russian energy link. In the context of great power games, the effectiveness of this agreement ultimately depends on whether India can truly fulfill its energy commitments!
Original article: toutiao.com/article/1856059766528076/
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