Trump Says He Agreed To Trade Deal With India: Narendra Modi 'Agreed' To Stop Buying Russian Oil

On Monday, President Donald Trump announced a major U.S.–India trade agreement with Prime Minister Narendra Modi that lowers tariffs.

Tariffs Drop And Trade Barriers Fall

In a post on Truth Social, Trump said India will reduce trade barriers to zero while the U.S. will cut tariffs on Indian goods from 25% to 18%.

The deal also ends the 25% tariff previously imposed for India's continued purchases of Russian oil.

A White House official told Reuters that the U.S. is rolling back an additional 25% punitive tariff imposed on all Indian imports over India's purchases of Russian oil, which had been layered on top of an existing 25% "reciprocal" tariff.

Trump described the agreement as a win for both nations.

"He agreed to stop buying Russian Oil," Trump said, referring to Modi, adding, "And to buy much more from the United States and, potentially, Venezuela."

Indian Stocks Rally As Trump Signals Oil Deals

In November 2025, Mukesh Ambani-led Reliance Industries stopped importing Russian crude for its export-only Jamnagar refinery, a move widely seen as a response to U.S. pressure.

On Saturday, Trump also said China could potentially reach an agreement with the U.S. to buy Venezuelan oil.

U.S.-listed shares of leading Indian companies jumped on the announcement, with Infosys Ltd (NYSE:INFY) ending Monday's regular session up 4.32%, Wipro Ltd (NYSE:WIT) climbing 6.75%, HDFC Bank Ltd (NYSE:HDB) gaining 4.35% and the iShares MSCI India ETF (BATS:INDA) advancing 2.98%.

India's $500 Billion Commitment

In his post, the U.S. leader added that Modi committed to purchasing more than $500 billion worth of American products, spanning energy, technology, agriculture and coal.

Trump said he immediately agreed to the trade deal at Modi's request during a morning phone call.

Modi also expressed enthusiasm for the deal, writing on X, "Delighted that Made in India products will now have a reduced tariff of 18%. Big thanks to President Trump on behalf of the 1.4 billion people of India."

US–India Trade Strains Push India Toward EU Deal

The trade relationship has been strained since the U.S. imposed tariffs of up to 50% on Indian goods, including the Russian oil penalty.

These measures sharply reduced Indian exports to the U.S.

Indian officials have been exploring other international partnerships.

Last week, India and the EU announced a free trade deal expected to reduce taxes on nearly all goods and potentially double EU exports to India by 2032.

Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.

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