The United States and India have reached a new trade agreement following a phone conversation between US President Donald Trump and Indian Prime Minister Narendra Modi. The deal includes changes to tariffs and energy purchases, according to statements from both leaders.
President Trump announced that the United States would reduce tariffs on Indian goods to 18 percent, down from the previous level of 25 percent. He also said that India would lower its own trade barriers to zero as part of the agreement.
The US leader further stated that an additional tariff penalty linked to India’s purchase of Russian oil would be removed. Trump said India had agreed to stop buying oil from Russia and would increase energy imports from the United States and possibly other countries.
The announcement follows recent developments in India’s trade relations with other global partners. Last week, India and the European Union also revealed a major trade agreement after years of negotiations.
Prime Minister Modi welcomed the development and expressed satisfaction over the outcome of the discussions. He described the agreement as beneficial for both nations and their people.
During the phone call, the two leaders reportedly discussed not only trade but also international issues, including the Russia-Ukraine conflict. Trump said the new arrangement would strengthen economic ties and contribute to broader stability.
According to the US president, India has committed to purchasing more than 500 billion dollars’ worth of American products in areas such as energy, technology, agriculture, and coal.
Trade relations between the two countries have faced difficulties in recent months after the United States imposed higher duties on several Indian exports. Those measures led to a sharp decline in Indian shipments to the American market.
Officials have indicated that the new agreement is expected to ease tensions and restore momentum to bilateral commerce. Further details of the deal are expected to be released in the coming days as both sides finalize the terms.