Trump said that under the deal, India has agreed to purchase more oil from the United States and may also import oil from Venezuela if required. The agreement includes India’s commitment to the US “Buy American” policy, under which it will purchase over $500 billion (₹46 lakh crore) worth of US goods, including energy, technology, agriculture, and coal products.
PM Modi responded on social media, writing, “Thank you, President Trump, on behalf of the 1.4 billion people of India.” He emphasized that the cooperation between the world’s two largest democracies benefits citizens of both countries and opens new economic opportunities. Modi added that he looks forward to taking the India-US partnership to new heights.
The deal marks a reversal of tariffs imposed during the Trump administration. In April 2019, the US levied a 25% reciprocal duty on Indian goods, followed by an additional 25% tariff in August 2025 in response to India’s purchase of Russian oil. The White House stated that the new arrangement lowers tariffs to among the lowest globally, while the extra tariff on oil imports from Russia has been removed.
US Ambassador to India, Sergio Gor, confirmed that the deal is near finalization and said some technical documents will be signed shortly. He described the agreement as reflecting the strong personal and strategic ties between PM Modi and President Trump.
Trump highlighted the strategic aspects of the trade pact, framing India’s shift away from Russian oil as supporting global stability amid the Russia-Ukraine conflict. On social media platform Truth Social, he also posted India-related images, including India Gate and a magazine cover featuring him with Modi, reflecting a symbolic emphasis on bilateral goodwill.
Experts note that the agreement provides India with greater trade predictability while diversifying its energy sources and strengthening its position as a major global buyer of US goods. Analysts also say that the move could pave the way for deeper economic and geopolitical cooperation between the two nations.
