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Trump announces India-US trade deal

On Truth Social, Trump outlined key elements of the agreement, claiming it would strengthen economic ties, shift India's energy sourcing away from Russia

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Shailesh Khanduri
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Narendra Modi (L); Donald Trump (R)

New Delhi: US President Donald Trump on Monday declared a significant bilateral trade breakthrough with India following a morning phone call with Prime Minister Narendra Modi, describing the Indian leader as one of his "greatest friends" and a "powerful and respected" figure.

In a lengthy post on Truth Social, Trump outlined key elements of the agreement, claiming it would strengthen economic ties, shift India's energy sourcing away from Russia, and contribute to ending the ongoing Russia-Ukraine war.

Trump highlighted discussions on trade, energy, and the Ukraine conflict, stating that Modi had agreed to halt purchases of Russian oil and ramp up imports from the United States and potentially Venezuela. 

"He agreed to stop buying Russian Oil, and to buy much more from the United States and, potentially, Venezuela. This will help END THE WAR in Ukraine," Trump wrote, emphasising the human cost of the conflict with "thousands of people dying each and every week."

The centerpiece of the deal involves immediate tariff adjustments: the US will reduce its reciprocal tariff on Indian goods from 25% to 18%, effective immediately, "out of friendship and respect for Prime Minister Modi and, as per his request." 

In exchange, Trump claimed India would move to eliminate its tariffs and non-tariff barriers on US products entirely "to ZERO", while committing to "BUY AMERICAN" at a significantly higher level.

Trump further stated that India would purchase over $500 billion worth of US energy, technology, agricultural products, coal, and other goods.

"Our amazing relationship with India will be even stronger going forward," he added. "Prime Minister Modi and I are two people that GET THINGS DONE, something that cannot be said for most."

trump india trade deal

Earlier in the day, US Ambassador to India Sergio Gor said Trump spoke to Prime Minister Narendra Modi in a brief social media post without sharing the details.

The phone conversation took place on a day External Affairs Minister S Jaishankar began a three-day visit to Washington.

"President Trump just spoke with Prime Minister Modi. STAY TUNED," Gor said in the post.

Donald Trump India US trade deal Narendra Modi