Trump after trade agreement. india news

According to Donald Trump, India will stop buying Russian oil and reduce non-tariff trade barriers to US goods to zero.

“Out of friendship and respect for Prime Minister Modi and, in accordance with his request, with immediate effect, we agreed to a trade agreement between the United States and India under which the United States will impose lower reciprocal tariffs, reducing them from 25% to 18%. They will likewise move to reduce their tariff and non-tariff barriers against the United States to zero. The Prime Minister, in addition, also committed to “Buy American” at a very high level. Trump wrote on Truth Social, $500 billion of American energy, technology, agriculture, coal and many other products.

What did US President Donald Trump say on the US-India trade agreement:

“It was an honor to speak with Prime Minister Modi of India this morning. He is one of my best friends and a powerful and respected leader of his country. We talked about many things, including trade and ending the war with Russia and Ukraine. He agreed to stop buying Russian oil and buy a lot from the United States and potentially Venezuela. This will help end the war in Ukraine that is happening right now, in which thousands of people are dying every week! Friendship for Prime Minister Modi And, effective immediately, we agreed to a trade agreement between the United States and India under which the United States will reduce its tariffs and non-tariff barriers against the United States to $500 billion of our imports of energy, agriculture, and coal. The relationship will be even stronger in the future. Prime Minister Modi and I are two people who work, something that cannot be said much,” President Donald J. Trump wrote on Truth Social.

Trump announces India-US trade deal; Tariff reduced to 18%

The phone conversation between Donald Trump and PM Narendra Modi took place on a day when External Affairs Minister S Jaishankar began a three-day visit to Washington.

There have been efforts by both sides over the past few weeks to defuse tensions in relations and move forward to finalize a proposed bilateral trade agreement.

There has been no comment yet from New Delhi on the conversation between PM Modi and US President Trump.

India currently faces 50 percent tariffs from the US. A 25 percent tariff on India was announced during Trump’s Liberation Day exercises in April 2025. A few weeks after this announcement, Trump announced the imposition of additional 25 percent tariffs on New Delhi due to its purchase of Russian oil.

US Trade Representative Jameson Greer last week praised the India-EU trade agreement, saying that with this agreement India has come out on top.

During his interview with Fox News he said, “The EU is turning to India to find space. The EU is so dependent on trade that if they can’t send all their goods to the United States they need other outlets. I’ve seen some of the details of the deal so far. I think India is on top of that.”

According to Greer, India is set to gain better access to European markets and could also benefit from expanded mobility provisions. He highlighted India’s competitive advantage, pointing to low-cost labor and a growing manufacturing base.

“They get more market access to Europe. It seems they have some additional immigration rights. I don’t know for sure, but EU President von der Leyen has talked about mobility for Indian workers in Europe. So, I think on net, it will be a good day for India,” he said.

On January 21 in Davos, US President Donald Trump had expressed confidence in the India-US BTA, noting that the two countries are “going to make a good deal”, while praising PM Modi as a close friend and respected leader.

Trump made this comment after his address at the 56th annual summit of the World Economic Forum. Asked by Moneycontrol about the India-US trade deal, Trump said, “I have great respect for your Prime Minister. He is a wonderful man and a friend of mine and we are going to make a good deal.”

PM Narendra Modi had spoken to US President Donald Trump in December last year and the two leaders agreed to work together to address common challenges and advance common interests.

During the telephone conversation, the two leaders reviewed the continued progress in India-US bilateral relations and exchanged views on key regional and global developments.

“Had a very warm and engaging conversation with President Trump. We reviewed progress in our bilateral relations and discussed regional and international developments. India and the US will continue to work together for global peace, stability and prosperity,” PM Modi had said in a post on Twitter.

The Narendra Modi-Donald Trump phone call comes amid speculation of a possible trade deal being announced between India and the US, despite uncertainty in relations due to Trump’s heavy tariffs on Indian exports.

In another post on Truth Social, US President Donald Trump praised India Gate in New Delhi and vowed to build the Triumph Arch in Washington DC.

Before Sergio Gore’s post on X, Donald Trump had shared a magazine cover on Truth Social featuring a photo of him and Prime Minister Narendra Modi.

India-US talks live updates: US Ambassador to India Sergio Gore has revealed that President Donald Trump has spoken to Prime Minister Narendra Modi. Speaking to X, the newly appointed US envoy did not disclose the nature of the phone call.