President Trump says US and India strike trade deal, lowering tariffs to 18% and claiming Modi agreed to stop buying Russian oil to help end Ukraine war.
WASHINGTON: US President Donald Trump announced a new trade deal with India, lowering tariffs on Indian goods to 18%.
The announcement sent Mumbai’s stock index soaring by almost 5% as it eased months of tension over India’s purchases of Russian oil.
Trump said the deal was struck “out of friendship and respect for Prime Minister Modi” following a phone call between the leaders.
He stated that India had agreed to stop buying Russian oil and would purchase more energy from the United States and Venezuela instead.
“This will help END THE WAR in Ukraine,” Trump posted on his Truth Social platform.
The agreement removes an additional 25% tariff Trump had imposed on India last August for its Russian oil purchases.
A White House official confirmed the additional duty would be dropped immediately.
Trump also claimed India agreed to buy more than $500 billion in US energy, technology, agricultural, and coal products.
Prime Minister Narendra Modi thanked Trump for the “wonderful” call and the reduced 18% tariff on Indian goods.
“Delighted that Made in India products will now have a reduced tariff of 18 percent,” Modi posted on X.
The Indian leader’s statement made no reference to halting Russian oil imports, however.
Analysts noted the “Russia question remains” for India, which became a major buyer of discounted Russian crude after the Ukraine war began.
In 2024, Russia supplied nearly 36% of India’s total crude imports, around 1.8 million barrels per day.
The deal follows a recent EU-India trade accord, which one expert said may have “incentivized Washington to get to yes.”
Modi added that “President Trump’s leadership is vital for global peace, stability, and prosperity.”
