United States President Donald Trump has announced a trade deal with Indian Prime Minister Narendra Modi to slash US tariffs on the nation’s goods to 18% from 50%.
In a post on Truth Social, Trump said India would reduce trade barriers to zero and stop buying Russian oil.
The announcement comes less than a week after India and the European Union announced a landmark trade deal that capped nearly two decades of on-off talks.
Modi said on X that he is “delighted” that an agreement with the US had been reached.
Trump said a morning phone call with Modi included discussions of trade and the Russia-Ukraine war.
“He agreed to stop buying Russian oil, and to buy much more oil from the United States and, potentially, Venezuela,” Trump wrote on Truth Social.
He added that he, at Modi’s request, immediately “agreed to a trade deal” that would see tariffs lowered and India’s tariffs and non-tariff barriers reduced to zero.
Additionally, Trump said Modi committed to buying more than $500billion (£366billion) worth of American goods, including energy, technology, agriculture, and coal products.
The trade relationship between the US and India has been strained since August, when the US imposed 50% tariffs on goods from India, the highest for a country in Asia.
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This included a 25% penalty linked to India’s purchase of Russian oil.
A White House official confirmed to the BBC that the Russian oil-linked tariffs will be dropped as part of the agreement, and other tariffs will be lowered to put the rate at 18%.
“Big thanks to President Trump on behalf of the 1.4 billion people of India for this wonderful announcement,” Modi said on X.
“When two large economies and the world’s largest democracies work together, it benefits our people and unlocks immense opportunities for mutually beneficial cooperation,” he added.
Indian exports to the US plummeted sharply as Trump’s tariffs took effect.
Officials in Delhi have been seeking partnerships with other countries, also grappling with Trump’s tariffs.
Last week, India and the European Union announced a free trade agreement that is set to lower taxes on nearly all goods between India and the bloc of 27 European states, as both sides seek to deepen ties in the face of increasing tensions with the US.
