US cuts India tariffs from 50% to 18%:Trump says India will buy oil from Venezuela instead of Russia; PM Modi says, ‘Thank you, President Trump’

On Monday, US President Donald Trump announced a long‑awaited trade deal between India and the United States. Trump said the US has reduced reciprocal tariffs on Indian goods from 25% to 18%. Trump spoke with Prime Minister Narendra Modi by phone on Monday morning. Later that evening, at about 10:30 pm, Trump announced the trade deal on the social media platform Truth Social. He claimed that Modi had agreed to stop buying oil from Russia and to buy more oil from the United States. Trump also said India could import oil from Venezuela if needed, and that India would buy more than ₹46 lakh crore ($500 billion) of US goods under the Buy American policy. Following the announcement, Prime Minister Modi wrote on X, “Thank you, President Trump, on behalf of the 1.4 billion people of India.” Trump first imposed a 25% reciprocal tariff on Indian goods in April 2019, and a further 25% penalty in August for India’s purchase of Russian oil. A White House official said that India will now be subject only to the 18% tariff, and the 25% tariff on Russian oil imports will be removed. See what Trump posted on social media It was an honor for me to speak with Indian Prime Minister Narendra Modi this morning. We discussed a wide range of issues, including the Russia-Ukraine war. PM Modi agreed to stop purchasing oil from Russia. India will now buy more oil from the United States. We also discussed the possibility of purchasing oil from Venezuela. This will help end the ongoing war in Ukraine, where thousands of people are losing their lives every week. Out of friendship, respect, and at Prime Minister Modi’s request, we have immediately agreed on a trade deal between the United States and India. Under this, the United States will reduce the reciprocal tariff imposed on India from 25% to 18%. India will also move forward to reduce its tariff and non-tariff barriers against the United States to zero. PM Modi also made a major commitment to “Buy American,” under which India will purchase over $500 billion worth of energy, technology, agriculture, coal, and other products from the United States. I am confident that the relationship between India and the United States will continue to strengthen. Also Read | US cuts reciprocal tariffs on India from 25% to 18% Modi says, eager to strengthen India-US partnership PM Modi wrote he was pleased to speak with President Trump and thanked him for reducing the tariff on Made in India products to 18%. He added that cooperation between the world’s two largest economies and democracies benefits people and opens new opportunities, and he looks forward to taking the partnership to new heights. India among countries with lowest tariffs US Ambassador to India, Sergio Gor, confirmed the India-US trade deal, saying it is almost final and some technical papers will be signed soon. He added that the deal reflects the strong friendship between PM Modi and President Trump, lowering India’s tariffs to among the lowest globally. The extra US tariff on Indian goods for buying Russian oil will also be removed. Trump shares photos of India Gate and with Modi Before speaking with PM Modi, Trump posted two India-related photos on Truth Social: one of India Gate, and another of a magazine cover featuring him with Modi. Trump wrote, “India’s Triumphal Arch (India Gate) is beautiful. Ours will be the most magnificent of them all!” He plans to build a massive arch called the “Arc de Trump” in Washington, DC, at the city’s entrance from Virginia. Its design is inspired by Paris’s Arc de Triomphe, and Trump helped design it. Also Read | India, EU trade pact grabs global attention