Washington/New Delhi: US President Donald Trump on Sunday announced that the United States and India have reached a new trade deal after a phone conversation with Prime Minister Narendra Modi. The agreement marks a major shift in trade ties between the two countries.

As part of the deal, the US will immediately reduce its “reciprocal tariff” on Indian goods from 25 percent to 18 percent. Trump shared the announcement on Truth Social, calling it a result of “friendship and respect” between the two leaders.

In return, India has agreed to remove most tariffs and non-tariff barriers on American products, effectively bringing them down to zero in many cases. India has also committed to stopping purchases of Russian oil and instead buying large quantities of energy from the United States, and possibly Venezuela.

Trump further said India has pledged to buy more than $500 billion worth of US goods, including energy, technology, agriculture, coal, and other products. He described this as a strong “Buy American” commitment and said both leaders “get things done.”

Prime Minister Modi welcomed the announcement and said he was delighted with the tariff reduction for “Made in India” products. Thanking Trump, Modi said closer cooperation between the world’s two largest democracies would benefit their people and create new opportunities.

The deal follows months of negotiations that began in early 2025 after Modi’s visit to the US following Trump’s inauguration. While both sides have hailed the agreement as a boost to India–US relations, detailed timelines and product-specific terms are yet to be officially released.

Promotional | North East Integration Rally