US President Donald J. Trump said he spoke with Indian Prime Minister Narendra Modi and discussed trade, energy, and the Russia Ukraine war. Trump claimed India agreed to reduce Russian oil purchases and increase buying from the United States.
What Did Trump Say About India and Russian Oil?
Trump stated that Prime Minister Modi agreed to stop buying Russian oil and instead purchase much more oil from the United States. He also mentioned that Venezuela could be a possible future source. According to Trump, this move would help weaken Russia’s financial strength and support efforts to end the war in Ukraine.
Is There a New US India Trade Deal?
Trump said both countries agreed to a trade deal effective immediately. He claimed the United States would lower a reciprocal tariff on India from 25% to 18%. In return, India would reduce its tariffs and non tariff barriers on US goods to zero over time.
What Is the “Buy American” Commitment?
Trump said India committed to “Buy American” at a much higher level. He added that India could purchase more than $500 billion worth of US products, including:
- Energy products
- Technology goods
- Agricultural products
- Coal
- Other industrial goods
How Does This Affect the Russia Ukraine War?
Trump connected the energy shift to the Ukraine conflict. His argument is that reducing Russian oil demand would lower Russia’s revenue, making it harder for Moscow to continue the war. However, no official confirmation has yet been released by the Indian government or US authorities at the time of reporting.
US Cuts India Tariffs to 18% After Oil Policy Shift
A White House official said the US will drop the extra 25% tariff on India after it reduced Russian oil purchases, lowering India’s total tariff rate to 18%. This is now below regional peers, with Pakistan at 19% and Bangladesh at 20%.
Key Questions People Are Asking
Did India officially confirm stopping Russian oil imports?
No official confirmation has been issued by the Indian government yet. The statement currently comes only from Trump.
Has the tariff cut been formally announced by US trade authorities?
There is no official trade document released so far. Trade agreements normally require formal procedures before becoming active.
Why is this deal important for global markets?
If implemented, the deal could reshape energy trade flows, reduce Russia’s oil income, increase US exports, and impact oil prices and currency markets. It could also strengthen US India strategic ties.
Market and Strategic Impact
This development, if confirmed, could have major effects on:
- Global oil supply chains
- US energy exporters
- India’s import strategy
- Russia’s oil revenues
- Currency markets like USDINR
Current Status
The information is based on Trump’s public statement. Investors and policy watchers are waiting for official confirmations from Washington and New Delhi before treating the deal as final.
Source: Donald Trump Truth Social post.
Modi on India US Trade Breakthrough
Narendra Modi said he had a positive conversation with Donald Trump and welcomed the decision to reduce tariffs on Made in India goods to 18%. He thanked Trump, calling it a major step that benefits 1.4 billion Indians and strengthens economic ties.
He said when two major democracies work together, it creates big opportunities for trade, growth, and cooperation across sectors. The move is being seen as a boost for exports and broader strategic partnership.
Modi also praised Trump’s global leadership and said India supports efforts toward peace, stability, and prosperity, adding that both sides will work closely to take the partnership to new heights.
US India Trade Snapshot
Trade between the United States and India reached about $212.3 billion in 2024, growing 8.3% from the previous year. This shows steady expansion in economic ties across both goods and services.
Goods trade alone totaled $128.9 billion. The US exported $41.5 billion worth of goods to India, while imports from India stood at $87.3 billion. This left the US with a goods trade deficit of $45.8 billion, slightly higher than last year.
Services trade was more balanced at $83.4 billion. US services exports to India were $41.8 billion and imports were $41.6 billion, resulting in a small US services trade surplus of about $102 million in 2024.
US India Trade Deal Who Really Gains
The United States gets strong economic and political benefits. More exports of energy and goods can support US jobs, and reduced Indian dependence on Russia weakens Moscow’s influence. It is also a strong domestic political win.
India gains lower tariffs, better access to the US market, and more technology and defense cooperation. Closer ties with Washington also help India balance China and strengthen its global position.
The risks for India are higher energy costs if Russian oil falls, less flexibility with suppliers, and pressure to buy more American goods. Some domestic sectors may feel that strain.
Overall, the US gets faster short term gains, while India is betting on long term trade access, strategy, and technology, while still trying to keep its multi alignment approach.
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