US President Donald Trump said the United States and India had reached a trade deal after talks with Prime Minister Narendra Modi, announcing a reduction in mutual tariffs and expanding economic cooperation between the two countries.
“It was an honor to speak with Prime Minister Modi of India this morning. He is one of my best friends and a powerful and respected leader of his country,” Trump wrote on Truth Social. “We talked about many things, including trade and ending the war with Russia and Ukraine.”
Trade agreement with lower tariffs
Trump said that in response to India’s request and “out of friendship and respect for Prime Minister Modi,” “the US has agreed to a bilateral trade agreement” that includes “reduced reciprocal tariffs.
“We have agreed to a trade agreement between the United States and India in which the United States will charge a reduced reciprocal tariff, reducing it from 25% to 18%. It will also move to reduce its tariffs and non-tariff barriers to the United States to ZERO,” Trump wrote.
He added that India is also committed to “BUY AMERICAN” with plans to buy more than $500 billion worth of US energy, technology, agricultural products, coal and other goods in an expanded economic partnership.
Trump frames as a product of a personal relationship
Trump emphasized his personal relationship with Prime Minister Modi and said their strong bond helped the result.
“Our wonderful relationship with India will be even stronger in the future. Prime Minister Modi and I are two people who DO THINGS, which cannot be said of most,” he wrote.
The President’s remarks come against a wider backdrop of customs tensions between Washington and New Delhi. In 2025, the US imposed steep tariffs – in some cases as high as 50% – on Indian imports in response to New Delhi’s purchase of Russian oil, a policy that drew criticism from Indian officials as unfair and commercially damaging.
Shifting away from Russian oil
Trump also claimed that Prime Minister Modi had agreed to stop buying Russian oil and instead increase energy imports from the United States and possibly Venezuela.
“He agreed to stop buying Russian oil and to buy much more from the United States and potentially Venezuela,” Trump wrote.
He described the move as part of a broader effort to weaken Russia’s war effort in Ukraine.
“This will help END THE WAR in Ukraine that is going on right now and thousands of people are dying every week!” he added.
PM Modi replies: Agreement benefits both nations
Responding to X, Prime Minister Narendra Modi welcomed the result and thanked Trump for the deal.
“Wonderful to speak with my dear friend President Trump today. I am 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,” Modi wrote.
He characterized the India-US trade deal as a boost to cooperation between the world’s two largest democracies. “When two major economies and the world’s largest democracies work together, it benefits our people and opens up huge opportunities for mutually beneficial cooperation.”
PM Modi also praised Trump’s leadership on global issues and promised continued cooperation: “India fully supports his efforts for peace. I look forward to working closely with him to take our partnership to unprecedented heights.”
US ambassador calls India-US relationship ‘unlimited’
US Ambassador to India Sergio Gore praised the newly announced trade deal between the United States and India and highlighted the strong personal relationship between President Donald Trump and Prime Minister Narendra Modi.
In a post on X (formerly Twitter), Gor said: “As I’ve said many times, President Trump truly considers PM Modi a great friend! Excited about the trade deal news tonight. The US-India relationship has UNLIMITED POTENTIAL!”
This is a developing story. Please check for updates.