Trump announces “trade deal” with India after Modi call

• US President Trump announced a trade deal where the US will lower reciprocal tariffs on India to 18% and drop a 25% penalty on Russian oil purchases, in exchange for Prime Minister Modi's commitment to stop buying Russian oil and potentially shift to US or Venezuelan sources.
• Trump framed the agreement as a major step toward ending the war in Ukraine by cutting off Russian revenue, a move facilitated by the US's newfound influence over Venezuelan oil following the recent abduction of Nicolás Maduro.

US President Donald Trump announced a "trade deal" with India on Monday, saying Prime Minister Narendra Modi promised to stop buying Russian oil and may purchase it instead from Venezuela.

Trump said on Truth Social that after speaking to Modi the United States would lower its reciprocal tariff rate from 25 percent to 18 percent, while India would reduce tariffs on US goods to zero.

A White House official told AFP that an additional 25-percent tariff Trump had slapped on India for its purchase of Russian oil would also be dropped following India's agreement to stop buying it.

The US leader has been pushing New Delhi for months to end its reliance on Russian oil as he seeks a ceasefire in Ukraine, and Trump slapped extra tariffs on India last year.

"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," Trump said.

Describing Modi as "one of my greatest friends," Trump said that "he agreed to stop buying Russian Oil, and to buy much more from the United States and, potentially, Venezuela.

"This will help END THE WAR in Ukraine."

The United States is effectively overseeing Venezuelan oil exports since toppling the South American country's leader Nicolas Maduro in a military operation in January.

Trump hit India, the world's most populous nation, with 25 percent reciprocal levies during his waves of "Liberation Day" tariffs last year.

He then stacked another 25 percent on top of that over India's purchases of Russian oil.

Modi was one of the first leaders to visit the White House after Trump's inauguration for his second term in January 2025, but that has not stopped difficult trade negotiations over the past year.

Trump also said in October that Modi had promised to stop buying Russian oil, but an agreement did not materialize at the time.