WASHINGTON, Feb. 2 (GeokHub) — U.S. President Donald Trump said on Monday that the United States and India have reached a new trade agreement following direct talks with Indian Prime Minister Narendra Modi, marking a significant shift in economic and energy relations between the two countries.
According to Trump, the agreement includes a reduction in reciprocal tariffs applied by the United States on Indian goods, cutting the rate from 25% to 18 with immediate effect. He described the decision as a gesture reflecting diplomatic ties and discussions held at India’s request.
The U.S. president also said India has committed to reducing its purchases of Russian oil, while increasing energy imports from the United States. He added that India may also explore sourcing oil from Venezuela as part of a broader diversification strategy.
Beyond energy, Trump said New Delhi has agreed to significantly expand its imports of American products across multiple sectors. These include energy, technology, agriculture, and other key industries, with total purchases expected to exceed $500 billion over time.
The announcement signals a deepening of trade cooperation between Washington and New Delhi, as both countries seek to rebalance supply chains and strengthen bilateral economic ties amid shifting global trade dynamics.
