Donald Trump announces India-US trade deal after phone call with PM Modi; Full statement of US President

US President Donald Trump on Monday announced a much-awaited trade deal with India following a phone call with Prime Minister Narendra Modi, saying New Delhi agreed to end purchases of Russian oil and that Washington would reduce its tariffs on Indian goods.

In a post on his Truth Social platform, Trump said it was “an honor to speak with Prime Minister Modi” and described him as “one of my greatest friends and a powerful and respected leader”.

He said the leaders spoke about trade and ending the Russia-Ukraine war.

Trump said India agreed to stop buying Russian oil and instead buy more energy from the United States and potentially Venezuela, which he said would help “END THE WAR in Ukraine”.

He announced that reciprocal tariffs on Indian imports into the US would be cut from 25% to 18%, effective immediately, while India would eliminate tariffs and non-tariff barriers on US products.

“At the request of Prime Minister Modi, effective immediately we agreed to a Trade Deal… This will help END THE WAR in Ukraine, which is taking place right now, with thousands of people dying each and every week!” Trump wrote.

A Reuters report, quoting a White House official, suggested that the deal also meant the United States was dropping the additional 25% punitive tariff on Indian goods for buying Russian crude.

“It was an Honor to speak with Prime Minister Modi, of India, this morning. He is one of my greatest friends and, a Powerful and Respected Leader of his Country. We spoke about many things, including Trade, and ending the War with Russia and Ukraine. He agreed to stop buying Russian Oil, and to buy much more from the United States and, potentially, Venezuela. This will help END THE WAR in Ukraine, which is taking place right now, with thousands of people dying each and every week! 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%. They will likewise move forward to reduce their Tariffs and Non Tariff Barriers against the United States, to ZERO. The Prime Minister also committed to “BUY AMERICAN,” at a much higher level, in addition to over $500 BILLION DOLLARS of U.S. Energy, Technology, Agricultural, Coal, and many other products. Our amazing relationship with India will be even stronger going forward. Prime Minister Modi and I are two people that GET THINGS DONE, something that cannot be said for most. Thank you for your attention to this matter! PRESIDENT DONALD J. TRUMP”

PM Modi, in a post on X, thanked Trump on behalf of 1.4 billion people of India for the tariff announcement.

He welcomed the reduction in duties for Made in India products and said cooperation between the two largest democracies would unlock “immense opportunities for mutually beneficial cooperation”.

"Wonderful to speak with my dear friend President Trump today. Delighted that Made in India products will now have a reduced tariff of 18%. Big thanks to President Trump on behalf of the 1.4 billion people of India for this wonderful announcement.

When two large economies and the world’s largest democracies work together, it benefits our people and unlocks immense opportunities for mutually beneficial cooperation.

President Trump’s leadership is vital for global peace, stability, and prosperity. India fully supports his efforts for peace.

I look forward to working closely with him to take our partnership to unprecedented heights."

US envoy's trade deal hint

Earlier in the day, US Ambassador to India Sergio Gor confirmed that Trump had spoken with Modi.

The US President also posted a photo of India Gate, and wrote: “India’s beautiful Triumphal Arch. Ours will be the greatest of them all!”

The announcement follows months of tense trade negotiations between the world’s two largest democracies. In August 2025, Trump doubled duties on Indian imports to 50% to pressure New Delhi over its purchase of discounted Russian crude, warning the rate could rise further if purchases continued.

India, which imports around 90% of its oil requirements, had relied heavily on Russian supplies at lower cost after Moscow’s invasion of Ukraine in 2022.

According to estimates, monthly Russian oil purchases by India have recently shown signs of slowing.

India slipped to third place among buyers of Russian fossil fuels in December after Reliance Industries and state-run refiners sharply cut crude oil imports, data from European think tank Centre for Research on Energy and Clean Air (CREA) showed.

India’s total imports of Russian hydrocarbons fell to 2.3 billion euros in December from 3.3 billion euros a month earlier, CREA said.