US President Donald Trump (right) with Indian Prime Minister Narendra Modi at the White House in Washington, February 13, 2025. BEN CURTIS/AP
After a year of fruitless talks, threats and sanctions, the United States and India announced they have reached a trade agreement, though without specifying the exact terms. Donald Trump delivered the news on Monday, February 2, on his social network, Truth Social. The US president said he had lifted the tariffs imposed in 2025 to punish India for its protectionist policies and its purchases of Russian oil. Tariffs on Indian products will be reduced from 50% to 18%, effective immediately.
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The Indian prime minister "agreed to stop buying Russian oil, and to buy much more from the US and, potentially, Venezuela," said the US president after a phone conversation with Narendra Modi. He praised the "amazing relationship [the US has] with India," which he said "will be even stronger going forward." According to Trump, New Delhi committed to "reduce their tariffs and non-tariff barriers against the United States to zero" and agreed to purchase $500 billion worth of energy, agricultural and coal products.
