Trump and Modi Announce Trade Agreement to End Russian Oil Purchases
U.S. President Donald Trump announced a trade agreement with India on Monday after a phone conversation with Prime Minister Narendra Modi. The agreement stipulates that India will cease its purchases of Russian oil and will instead increase imports of American oil, with the possibility of sourcing from Venezuela as well.
On his platform "Truth Social," Trump stated that Modi "agreed to stop purchasing Russian oil" and pledged to acquire American goods in various sectors, including energy, technology, and agriculture, totaling over $500 billion.
Trump also noted that, in a gesture of goodwill towards Modi, the U.S. would lower tariffs on Indian imports from 25% to 18%, while India would eliminate its tariffs on American products.
This agreement follows the U.S. imposing a 50% tariff on Indian exports in August 2025 as a response to India's continued purchases of Russian oil.
The timing of this agreement is significant as India aims to alleviate trade tensions with the United States and diversify its market sources in light of stringent tariffs.
