U.S. President Donald Trump on Monday announced that the United States and India have agreed to a trade deal, alongside significant commitments on energy and strategic trade.
According to Trump, India has agreed to stop purchasing Russian oil and instead increase its energy imports from the United States, with potential additional sourcing from Venezuela.
“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,” Trump said in a social media post following his call with Indian Prime Minister Narendra Modi.
“As part of this agreement, the United States will reduce its reciprocal tariff on India from 25% to 18%.”
Trump further stated that Prime Minister Modi committed to purchasing over $500 billion worth of U.S. goods, spanning energy, technology, agriculture, coal, and other key sectors — a move that, if executed, would mark one of the largest bilateral trade commitments between the two countries.
If formalised and implemented, this signals a major reset in U.S.–India trade relations, with implications across energy markets, global supply chains, and geopolitical alignments. While official confirmation and policy-level details are awaited from the Indian side, the announcement puts the U.S.–India trade corridor firmly back in focus for global markets.
Note: No statement yet from MEA - India.
