India and the United States (US) have agreed to a trade deal, announced President Donald Trump on Monday following a telephonic conversation with Prime Minister Narendra Modi. Calling PM Modi one of his 'greatest friends', the 79-year-old Republic president also announced that he has decided to lower tariffs from 25 per cent to 18 per cent.
In a post on Truth Social, Trump claimed that PM Modi has agreed that India will stop procuring Russian oil. The entire West has been critical of India for buying Russian crude. Besides, he further said that India will start more oil from the US and also from Venezuela.
"It was an honour to speak with Prime Minister Modi... 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," he said, adding that this will help in stopping Ukraine war that has claimed thousands of lives.
The US president said he reduced the tariffs to 18 per cent out of his "respect and friendship" for PM Modi. In his post, Trump also said India has decided to reduce tariffs and non-tariff barriers against the US to zero, adding that the two leaders "get things done, something that cannot be said for most."
"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," he said.
PM Modi thanks Trump
PM Modi has thanked Trump for reducing the tariffs. He also hailed the US president's leadership and said that it is crucial for global peace and stability. The prime minister further said that he is looking forward to working with Trump, adding that India will fully support his peace efforts.
"Big thanks to President Trump on behalf of the 1.4 billion people of India for this wonderful announcement," PM Modi Xed.
Trade deal, Trump's criticism of India buying Russian oil
Since his return to office in 2024, Trump has been critical of India's procurement of Russian crude. Initially, there was a 25 per cent tariffs on India but later Trump imposed an additional 25 per cent levy due to this. But recently, he had claimed that India has agreed to stop buying Russian crude.
Later, Trump also claimed that India will start procuring oil from Venezuela.
Not just the procurement of Russia crude, but India-US ties were also hit over Trump's claim that he stopped the four-day conflict between India and Pakistan in May last year. However, India always maintained that no third party was involved in the ceasefire, even though the US president kept repeating his claim.