The India-US trade deal caps nearly 12 months of tense negotiations, coming days after the India-EU trade deal was announced. US Ambassador to India Sergio Gor posted an update on the pact on social media at 9:16 pm IST.
Gore’s announcement was followed by a lengthy post on Truth Social by US President Donald Trump, where he said the US had reduced reciprocal tariffs on India to 18% from the existing 25% “with immediate effect”.
Almost two hours later, Prime Minister Narendra Modi posted on X: “Great to speak with my dear friend President Trump today. I am delighted that Made in India products will now have an 18% tariff reduction. A big thank you to President Trump on behalf of the 1.4 billion people of India for this wonderful announcement.”
Unveiling the groundbreaking agreement, Prime Minister Modi added: “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.”
Trump said in his post that India had agreed to stop buying Russian oil. The US president said India had agreed to buy much more from the US and potentially from Venezuela. According to Trump’s statement, India has agreed to buy $500 billion worth of US energy, agriculture, coal and other products as part of the trade deal.
“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. We talked about many things, including trade and ending the war with Russia and Ukraine. He agreed to stop buying Russian oil and to buy a lot more from the United States and potentially from Venezuela (sic).” This deal comes after most of the world, including China, reached a trade deal with the US,” he said.
The trade deal, which took months to seal, comes after India addressed several US demands in the 2026-27 budget. Check out the timeline of events here: