India and the United States have officially announced a trade deal. US President Donald Trump announced the agreement after a telephone conversation with Prime Minister Narendra Modi, under which the reciprocal tariff imposed by the United States on India has been reduced from 25 percent to 18 percent.
President Trump stated that the announcement followed his conversation with Prime Minister Modi. He later described the agreement on social media as a significant step in India–US relations.
Prior to this trade deal, the United States had announced an additional 25 percent penalty tariff on India over India’s purchase of oil from Russia. Following that decision, the total US tariff on Indian goods had risen to 50 percent.
A senior White House official has said that the United States is preparing to remove the 25 percent penalty tariff as well. According to the official, India has reduced its purchase of oil from Russia, prompting the United States to signal this relaxation.
The White House spokesperson clarified that the condition of the agreement is that India will completely stop purchasing oil from Russia, not merely reduce such purchases. The spokesperson said discussions between the two countries on this issue are expected to continue.
In a social media post, President Trump claimed that Prime Minister Modi has agreed to stop buying oil from Russia and to purchase more oil from the United States. He also said that, if required, India would purchase oil from Venezuela. President Trump stated that such steps could help efforts to end the Russia–Ukraine war, adding that decisions related to energy purchases have a direct impact on global politics.
President Trump further claimed that India would purchase goods worth USD 500 billion under the Buy American policy. He said this would be significant for US industry and employment. No detailed official statement has been issued by India regarding this claim.
Following the announcement, Prime Minister Narendra Modi thanked President Trump in a social media post. Prime Minister Modi said he was pleased to speak with President Trump and stated that reducing tariffs on Made in India products to 18 percent was positive news for India’s 1.4 billion people. He described the decision as a reflection of strengthening relations between the two countries.
In a separate post, President Trump praised Prime Minister Modi, calling him one of his closest friends and a powerful and respected leader. He said discussions covered trade, energy policy, and the Russia–Ukraine war, and added that both leaders focus on action rather than words.
