US President Donald Trump has announced that the United States has reached a trade deal with India following a phone conversation with Indian Prime Minister Narendra Modi, confirming a reduction in tariffs on Indian goods.
According to Trump, the agreement will see the US cut its reciprocal tariff on Indian imports from 25 per cent to 18 per cent, with immediate effect. He said the decision was taken “out of friendship and respect” for Modi and at the Indian leader’s request.
Trump further claimed that India has agreed to stop purchasing Russian oil, a move Washington has long pushed for amid the ongoing war in Ukraine. He added that India would instead increase oil imports from the United States and potentially Venezuela, while also lowering import taxes on US goods to zero and committing to buy $500 billion worth of US energy, technology, and agricultural products.
However, the Indian government has yet to issue a formal statement confirming these broader commitments. Modi, in a post on X, welcomed the tariff reduction and described his conversation with Trump as productive, saying cooperation between the world’s largest democracies would unlock significant opportunities for mutual benefit. He did not directly address the issue of Russian oil purchases.
India has faced steep US tariffs since Trump returned to office in January 2025, including penalties tied to its continued importation of discounted Russian crude. The White House later confirmed that the additional 25 per cent tariff imposed over those oil purchases would be dropped following the new agreement.
The announcement signals a potential easing of trade tensions between Washington and New Delhi, though questions remain over the scope and implementation of the commitments outlined by the US president.
