U.S., India Strike Sweeping Trade Agreement
The breakthrough follows collapsed discussions throughout 2025, which prompted Washington to impose punitive 50% duties on India—25% standard tariff plus an additional 25% penalty linked to New Delhi's continued acquisition of Russian petroleum.
Writing on Truth Social, Trump disclosed a phone conversation with Indian Prime Minister Narendra Modi during which he says the leader committed to halt Russian oil imports while dramatically increasing purchases from American and possibly Venezuelan sources. The president suggested this pivot could help resolve the Ukraine crisis.
"Out of friendship and respect for Prime Minister Modi, and as per his request, effective immediately, we agreed to a trade deal between the United States and India, whereby the United States will charge a reciprocal tariff, lowering it from 25% to 18%," Trump stated. "They will likewise move forward to reduce their tariff and non-tariff barriers against the United States to zero."
Modi verified the agreement's completion in his own statement.
"Delighted that Made in India products will now have a reduced tariff of 18%," he posted on X. "Big thanks to President Trump on behalf of the 1.4 billion people of India for this wonderful announcement."
Notably, the Indian leader avoided addressing Trump's assertion regarding Russian oil cessation, stating only that the South Asian nation backs Trump's "efforts for peace."
Trump further claimed Modi committed to "buy American at a much higher level" alongside procuring "over $500 billion of US energy, technology, agricultural, coal, and many other products."
Agricultural and dairy exclusions had previously emerged as critical obstacles blocking any US-India commercial pact, with New Delhi maintaining its position centered on safeguarding domestic farming interests.
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