Trump's carrot and stick. Tariffs on trade with Iran and a “reward” for India for retreating from Russia
2026-02-07 13:00
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2026-02-07 13:00
US President Donald Trump said on Friday that talks with Iran in Oman had gone very well and Tehran was “very keen” to strike a deal with the United States. He also announced significant progress in talks regarding the war in Ukraine, but did not provide details.
US President Donald Trump signed two key executive orders on Friday that reshape US trade and energy policy. On the one hand, the White House allowed the imposition of tariffs on countries trading with Iran, and on the other, it abolished punitive tariffs on India. This is a “reward” for New Delhi's decision to stop importing oil from Russia and turn to raw materials from the US.
In Friday's Iran executive order, Donald Trump gave his administration the green light to impose tariffs on goods imported into the U.S. from any country that “directly or indirectly purchases, imports, or otherwise acquires any goods or services from Iran.” Although the document does not specify a fixed rate, an example of a customs duty of 25 percent is given. This decision is the implementation of the president's announcement in January, when he threatened secondary tariffs against countries maintaining trade relations with Tehran.
Trump: Iran really wants this deal
– We had very good talks about Iran. It looks like Iran is very keen to make a deal, Trump said while talking to reporters aboard Air Force One en route to Florida. He referred in this way to Friday's talks between his envoy Steve Witkoff and Iranian Foreign Minister Abbas Aragchi in Muscat, Oman. – We'll have to see what the deal is. But I think that Iran really wants to conclude the agreement, just like it should have done last time (…) Maybe now it will be different than last time – he added, recalling the American attack on nuclear installations from June last year.
Trump stressed that he was “in no hurry” to use force if the negotiations failed, recalling that he had similarly delayed attacking Venezuela.
The president also signaled progress in talks on ending the war in Ukraine, describing them as “very good.”
“Something could happen,” Trump said, without elaborating.
At the same time, the US Department of State announced sanctions on 15 entities and units of the so-called shadow fleets that engage in the illegal trade of Iranian oil. These actions are aimed at cutting off the regime in Tehran from the revenues that – according to Washington – finance the destabilization of the region. The US virtual embassy in Iran even issued a message advising Americans to leave the country immediately.
India abandons Russian oil
The second regulation signed on Friday has a completely different nature. Donald Trump withdrew the additional 25% tariffs on goods from India imposed last year. This is a direct result of the trade agreement concluded and the strategic turn in New Delhi's energy policy.
“India has committed to ceasing direct or indirect imports of crude oil from the Russian Federation and has stated that it will purchase American energy products from the United States,” Trump wrote in a justification for the decision.
The authorities in New Delhi have committed to purchasing products from the US worth USD 500 billion, including oil and gas, as well as concluding a defense cooperation agreement for the next decade. As a result, tariffs on Indian goods in the US will drop from 50 to 18 percent, and India will eliminate its tariffs in many categories. India has so far been the only major economy in the world that has not had a negotiated agreement with the Trump administration.
Negotiations in the shadow of sanctions
Decisions on tariffs and sanctions were announced on the day when confidential US-Iranian negotiations were taking place in Oman. According to Reuters, Tehran rejected Washington's demands to halt uranium enrichment, but expressed readiness to talk about the “level of purity” of the raw material.
The United States sought to expand the talks to include the missile program and Iran's support for Hamas and the Houthis, but these topics were not discussed. Despite the tense atmosphere and military threats from Trump, diplomats suggest that American negotiators are showing some flexibility, and both sides declare their readiness to resume nuclear talks. (PAP)
