The India-US trade deal concludes nearly 12 months of tense negotiations, which comes days after the announcement of the India-EU trade deal. US Ambassador to India Sergio Gor dropped an update about the pact on social media at 9:16 PM Indian time.
Gor’s announcement was followed by a lengthy post by US President Donald Trump on Truth Social, where he declared that the US “effective immediately” lowered reciprocal tariffs on India to 18% from existing 25%.
Almost two hours later, Prime Minister Narendra Modi in a post on
Making the groundbreaking deal public, PM Modi added, “When two large economies and the world’s largest democracies work together, it benefits our people and unlocks immense opportunities for mutually beneficial cooperation.”
Trump said in his post that India has agreed to stop buying Russian oil. The US President said that India agreed to buy much more from the US and potentially Venezuela. According to Trump’s statement, India agreed to purchase $500 billion worth of US energy, agriculture, coal and other products under the trade deal.
“It was an Honor to speak with Prime Minister Modi, of India, this morning. He is one of my greatest friends and, a Powerful and Respected Leader of his Country. We spoke about many things, including Trade, and ending the War with Russia and Ukraine. He agreed to stop buying Russian Oil, and to buy much more from the United States and, potentially, Venezuela (sic).” This agreement comes after most of the world, including China, arrived at a trade deal with the US,” he said.
A trade deal that took months to make comes after India addressed several US demands in the Budget 2026-27. Have a look at the timeline of events here:
