Trump with PM Modi (file photo)
US President Donald Trump has announced a trade deal with India, after having imposed 50% tariffs on Indian goods in August 2025. The trade deal announced by Trump on his social media platform Truth Social has several elements, including a substantial reduction in tariffs and claims of India stopping Russian oil purchases.Trump had imposed a 50% tariff on India, 25% of which were for crude oil imports from Russia. Trump administration officials have repeatedly claimed that India’s crude purchase from Russia helped finance the latter’s war against Ukraine.
PM Narendra Modi confirmed the trade deal via X (formerly Twitter). He said, “Wonderful to speak with my dear friend President Trump today. Delighted that Made in India products will now have a reduced tariff of 18%. Big thanks to President Trump on behalf of the 1.4 billion people of India for this wonderful announcement. When two large economies and the world’s largest democracies work together, it benefits our people and unlocks immense opportunities for mutually beneficial cooperation. President Trump’s leadership is vital for global peace, stability, and prosperity. India fully supports his efforts for peace. I look forward to working closely with him to take our partnership to unprecedented heights.”Also Read | India-US trade deal: 25% penal tariffs linked to Russian oil gone? Here’s what we know
India-US Trade Deal: Top Points To Know
Trump’s Truth Social post contained many points around the trade deal. India is yet to confirm the trade deal. Here are the top points that Trump has said:
- India will lower its tariffs on US exports to zero
- US will drop the
reciprocal tariffs from 25% to 18% - Trump claimed that India will stop buying oil from Russia
- India will step up oil purchase from the US
- India may potentially starting buying oil from Venezuela
- Trump said that India has committed to buying $500 billion on several American things including energy, agriculture, coal, and technology
- Trump claimed the deal will help stop the Russia-Ukraine war
How Trump announced India-US trade deal
Trump posted on Truth Social, “It was an Honor to speak with Prime Minister Modi, of India, this morning. He is one of my greatest friends and, a Powerful and Respected Leader of his Country. We spoke about many things, including Trade, and ending the War with Russia and Ukraine. 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, which is taking place right now, with thousands of people dying each and every week! 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, whereby the United States will charge a reduced Reciprocal Tariff, lowering it from 25% to 18%. They will likewise move forward to reduce their Tariffs and Non Tariff Barriers against the United States, to ZERO. The Prime Minister also committed to “BUY AMERICAN,” at a much higher level, in addition to over $500 BILLION DOLLARS of U.S. Energy, Technology, Agricultural, Coal, and many other products. Our amazing relationship with India will be even stronger going forward. Prime Minister Modi and I are two people that GET THINGS DONE, something that cannot be said for most. Thank you for your attention to this matter!”
