U.S. President Donald Trump announced Monday that the United States and India have reached a trade agreement that includes reduced tariffs and significant purchasing commitments from India.
The deal lowers U.S. reciprocal tariffs on Indian goods from 25% to 18%, according to Trump’s social media post following a call with Indian Prime Minister Narendra Modi.
As part of the agreement, Modi committed that India would purchase more than $500 billion worth of U.S. products across energy, technology, agriculture, and other sectors.
Trump also stated that India agreed to stop purchasing Russian oil and instead increase its imports from the United States and potentially Venezuela.
“Out of friendship and respect for Prime Minister Modi and, as per his request, effective immediately, we agreed to a Trade Deal between the United States and India, whereby the United States will charge a reduced Reciprocal Tariff, lowering it from 25% to 18%,” Trump wrote in his announcement.
The agreement marks a significant development in U.S.-India trade relations, with substantial commitments from both sides.