Highlights:
- India commits to ending purchases of Russian oil, shifting toward US and possibly Venezuelan supply
- $500 billion in Indian investments planned across US energy, transportation, and agriculture
- US cuts tariffs on Indian goods from 25 per cent to 18 per cent
- American exports to India to face zero tariffs, according to the White House
- Deal follows direct talks between President Trump and prime minister Modi
The White House has announced a major new trade agreement with India, under which New Delhi has committed to ending its purchases of Russian oil and making investments worth $500 billion in the United States across key sectors, including energy, transportation, and agriculture.
White House Press Secretary Karoline Leavitt revealed the details on Tuesday, describing the agreement as another significant trade win for President Donald Trump. She said the deal was finalized after Trump spoke directly with Prime Minister Narendra Modi, highlighting what she called a strong personal relationship between the two leaders.
“The President struck another great trade deal with India,” Leavitt told reporters. “He spoke with Prime Minister Modi directly. They share a very good relationship.”
According to Leavitt, a central element of the agreement is India’s commitment to stop purchasing Russian oil. Instead, India will begin buying more oil from the United States and may also source energy from Venezuela. She said the shift would deliver direct benefits to the U.S. economy and American consumers.
“India is committed not only to no longer purchasing Russian oil, but also to buying oil from the United States, and potentially from Venezuela as well,” Leavitt said, adding that the move would support US energy producers and workers.
In addition to changes in energy sourcing, Indian prime minister Modi has committed to $500 billion in investments and purchases in the United States. These investments will span major sectors such as energy, transportation, and agriculture, further deepening economic ties between the two countries.
Leavitt also confirmed that the United States has agreed to cut tariffs on Indian goods from 25 per cent to 18 per cent. At the same time, American exports to India will face zero tariffs, a move the White House described as a major boost for US businesses, workers, and consumers.
The Trump administration had previously imposed tariffs of up to 50% on Indian products, including a 25 per cent penalty linked to India’s continued purchases of Russian oil. Under the new agreement, those punitive measures will be lifted, with reciprocal tariffs significantly reduced.
President Trump detailed the agreement in a Truth Social post, saying India would reduce all tariffs and non-tariff barriers against the United States. He also said Indian prime minister Modi had committed to “Buy American” at a much higher level, including more than $500 billion in purchases of US energy, technology, agricultural products, coal, and other goods over the coming years.
“Our amazing relationship with India will be even stronger going forward,” Trump wrote. “Prime Minister Modi and I are two people who get things done.”
Prime minister Modi welcomed the agreement, calling it “wonderful” to speak with his “dear friend” Trump. He thanked the US president for reducing tariffs on Indian-made products and said the deal would unlock new opportunities for cooperation between the world’s two largest democracies.
“When two large economies work together, it benefits our people and unlocks immense opportunities for mutually beneficial cooperation,” Modi said, adding that India looks forward to taking the partnership with the United States to unprecedented heights.
