President Donald Trump announced on Monday that the United States has reached a new trade agreement with India, following discussions between the two leaders. In his statement, Trump emphasized that Washington will reduce its “Reciprocal Tariff” on Indian goods from 25 percent to 18 percent while India commits to eliminating tariffs and non-tariff barriers against U.S. products entirely.
The president also stated that Indian Prime Minister Narendra Modi agreed to significantly boost American purchases—exceeding $500 billion in energy, technology, agricultural, coal, and other goods—while halting Russian oil imports. Trump described the two leaders’ relationship as “strong” and noted they “GET THINGS DONE.” He further claimed Modi pledged to stop buying Russian oil and increase purchases from the United States and potentially Venezuela, stating this would help “END THE WAR in Ukraine,” which he said is causing thousands of deaths weekly.
The agreement follows over a year of strained trade relations between Washington and New Delhi. In August 2025, the Trump administration imposed a 25 percent tariff on Indian exports and signaled plans to double it to 50 percent, linking the levies to India’s Russian oil purchases and citing Ukraine-related concerns. Industry groups warned steep tariffs threatened Indian exporters in textiles and leather sectors, potentially slowing manufacturing growth, while credit agencies highlighted economic risks.
Earlier this year, Trump supported legislation imposing punitive tariffs of up to 500 percent on nations continuing to buy Russian oil, with India among those identified by lawmakers as potential targets. India has already scaled back Russian oil imports amid U.S. pressure and explored alternative suppliers.
