WASHINGTON, Feb 2 (Reuters) – U.S. President Donald Trump on Monday said he had agreed on a trade deal with India, and that India also agreed to stop buying Russian oil and buy more from the United States and potentially Venezuela.
“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%,” Trump said in a social media post following a call with Indian Prime Minister Narendra Modi.
https://x.com/narendramodi/status/2018377090840830101
Modi said in a post on X, formerly Twitter, that U.S. tariffs on “Made in India” products would be reduced to 18%, calling the announcement a significant step in strengthening bilateral economic ties.
“Wonderful to speak with my dear friend President Trump today,” Modi wrote. “Delighted that Made in India products will now have a reduced tariff of 18%.”
Modi thanked Trump for the decision, saying it was made on behalf of India’s 1.4 billion people. He added that cooperation between the two countries would unlock new opportunities and benefit both economies.
“When two large economies and the world’s largest democracies work together, it benefits our people and unlocks immense opportunities for mutually beneficial cooperation,” Modi said.
Trump first announced the deal earlier on social media platform Truth Social, saying it was “an honor” to speak with the Indian prime minister. He said the discussions covered trade and broader geopolitical issues, including Russia and Ukraine.
According to Trump, Modi agreed to stop purchasing Russian oil and increase purchases from the United States and potentially Venezuela, a move Trump said would help efforts to end the war in Ukraine.
Modi said India looked forward to working closely with Trump to take the partnership “to unprecedented heights,” adding that Trump’s leadership was vital for global peace, stability and prosperity.
The agreement marks the latest effort by both governments to deepen trade and strategic ties amid shifting global economic and political dynamics.
Modi also committed to buy more than $500 billion dollars worth of U.S. energy, technology, agricultural and other products, Trump added.
(Reporting by Bhargav Acharya; writing by Susan Heavey; Editing by Doina Chiacu and Michelle Nichols )
