The United States and India have reached a major trade agreement following a phone call between US President Donald Trump and Indian Prime Minister Narendra Modi, according to BBC News. The deal is expected to ease trade tensions, lower tariffs, and strengthen economic ties between the world’s two largest democracies.
President Trump announced that the United States will reduce tariffs on Indian goods from 25% to 18%. In return, India has agreed to lower its own tariffs and non-tariff barriers on American products to zero. The agreement also includes a key political shift: India will stop buying oil from Russia and instead purchase more energy from the United States and possibly Venezuela.
As part of the deal, the US will remove an additional 25% penalty tariff that had been imposed on India for continuing to import Russian oil. A White House official confirmed that these penalties will now be dropped, easing pressure on Indian exporters.
Trump said that during the call, Modi also committed to buying more than $500 billion worth of American goods, including energy, technology, agricultural products, and coal. The agreement comes after months of strained relations, during which Indian exports to the US fell sharply due to high tariffs.
Prime Minister Modi welcomed the deal, calling it a positive step for both nations. He said the partnership would benefit the people of both countries and unlock new opportunities for cooperation. “When two large economies and the world’s largest democracies work together, it creates immense potential,” Modi wrote on social media.
The announcement follows a recent trade agreement between India and the European Union, highlighting India’s growing role in global trade. Experts believe the US-India deal will boost market confidence, and US stock markets showed slight gains after the news.
The agreement marks a turning point in US-India relations, signaling renewed cooperation in trade, energy, and diplomacy.
