Europe Asia News

In a post on Truth Social, Trump said India would reduce its trade barriers to zero and would also stop purchasing Russian oil. The additional 25 percent tariff penalty imposed due to New Delhi’s refusal to halt purchases of Russian oil will be lifted.

The announcement came less than a week after India and the European Union unveiled a historic trade agreement that ended nearly twenty years of intermittent negotiations.

In a statement on X, Modi said he was “pleased” to have reached an agreement with the United States.

Trump noted that during his morning phone call with Modi, trade and the Russia–Ukraine war were discussed.

“He agreed to stop purchasing Russian oil and to buy much more oil from the United States and potentially from Venezuela,” Trump wrote.

Trump added that, at Modi’s request, he immediately approved a “trade agreement” providing for tariff reductions and the elimination of India’s tariff and non-tariff barriers.

He also said that Modi committed to purchasing more than $500 billion worth of American goods, including energy, technology, agricultural and coal products.

Trade relations between the United States and India had become strained after Washington imposed 50 percent tariffs on Indian goods in August, 25 percent of which were linked to India’s purchases of Russian oil.

A White House official confirmed to the BBC that tariffs linked to Russian oil would be removed as part of the agreement and that other tariffs would be reduced to 18 percent.