US President Donald Trump on Monday announced a new trade deal with India featuring reduced reciprocal tariffs and expanded market access, while claiming New Delhi would halt Russian oil purchases and commit to buying over $500 billion worth of American goods. Prime Minister Narendra Modi confirmed the tariff reduction, welcoming the 18% rate that replaces the earlier 25% levy.

The breakthrough comes after nearly 12 months of tense negotiations that had strained bilateral ties, with India facing some of the highest US tariffs globally.

Modi Confirms Tariff Relief

Following a phone call between the leaders, PM Modi posted on social media: "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."

The new rate is lower than the 19% tariff faced by Pakistan, marking a significant diplomatic win for India.

Modi praised Trump's leadership as "vital for global peace, stability, and prosperity," noting that cooperation between "two large economies and the world's largest democracies" benefits both nations.

Trump's Broader Claims

Trump's Truth Social post described a more comprehensive agreement, claiming India would reduce tariffs and non-tariff barriers on US goods to zero and purchase more than $500 billion worth of American energy, technology, agricultural products, and coal.

Trump also stated India agreed to stop buying Russian oil and instead purchase energy from the United States and potentially Venezuela, linking the move to efforts to end the Russia-Ukraine war.

Indian Confirmation Limited to Tariffs

While Union Minister Ashwini Vaishnaw called it a "win-win deal," Modi's statement did not explicitly mention commitments regarding Russian oil or zero tariffs on American goods.

US Ambassador Sergio Gor described the relationship's "limitless potential," calling the deal a major boost for bilateral ties.