President Donald Trump said the United States has reached a new trade agreement with India following a phone call with Prime Minister Narendra Modi, marking a major shift in economic ties between the two countries.
In a statement shared on social media, Trump said the agreement would immediately reduce reciprocal tariffs on Indian goods from 25 percent to 18 percent. He added that India would lower its tariffs and non tariff barriers on US products to zero.
Trump also said Modi agreed to stop buying Russian oil and instead increase purchases from the United States and potentially Venezuela. The president claimed the move would help advance efforts toward ending the war between Russia and Ukraine.
According to Trump, India committed to buying more than $500 billion worth of US energy, technology, agricultural products, coal, and other goods. He described Modi as a close friend and said the agreement would strengthen ties between the world’s two largest democracies.
Modi later welcomed the announcement in a public message, thanking Trump and saying the deal would unlock new opportunities for cooperation and economic growth. He praised Trump’s leadership and said India looks forward to taking the partnership to new levels.
A White House official said an additional 25 percent tariff imposed earlier over India’s purchases of Russian oil would also be removed following New Delhi’s commitment to change its energy sourcing.
Trade tensions between the two countries had intensified last year when the US raised tariffs on Indian imports, partly in response to India’s continued reliance on Russian crude. Trump had previously said Modi promised to reduce those purchases, but no deal had been finalized at the time.
The announcement follows months of negotiations and comes after Modi’s visit to the White House early in Trump’s second term. Both leaders signaled that the agreement could reshape trade flows and deepen strategic cooperation between Washington and New Delhi.
