US and India reach trade deal, Trump says after Modi call

US President Donald Trump announced that he agreed to a trade deal with India's Prime Minister Narendra Modi, where the US will lower tariffs on goods from India to 18% from 25%.

In a post on Truth Social, Trump said India will reduce trade barriers to zero and will also stop buying Russian oil. An additional 25% tariff penalty imposed for Delhi's refusal to stop buying oil from Russia will be dropped.

The announcement comes less than a week after India and the European Union announced a landmark trade deal after nearly two decades of on-off talks.

Modi said on X that he is "delighted" that an agreement has been reached.

In the post, Trump said that a morning phone call with Modi included discussions of trade and the Russia-Ukraine war.

"He agreed to stop buying Russian oil, and to buy much more oil from the United States and, potentially, Venezuela," Trump wrote, adding that the deal will help "end" the fighting.

Trump added that, at Modi's request, he immediately "agreed to a trade deal" that would see tariffs lowered and India's tariffs and non-tariff barriers reduced to zero.

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