BREAKING: Trump strikes trade deal with India, slashes tariffs after call with Modi

US President Donald Trump announced Monday that the United States and India have agreed to a trade deal that cuts key tariffs on Indian goods, ending months of strained negotiations between the two countries. The new terms lower the main tariff on Indian imports to 18 percent from 25 percent, White House officials said, and drop the added 25 percent penalty added from India’s purchasing of Russian oil, BBC reports.

Trump said in his post that trade and the Russia-Ukraine war were discussed, and that Modi agreed to halt purchases of Russian oil and to significantly increase purchases of US goods. He also said the Indian leader agreed to drop most trade barriers against US exports.

The deal marks a break in relations since the Trump administration imposed tariffs in 2025. Those measures, which brought total duties on many Indian exports to 50 percent, were aimed at pressuring India to shift away from Russian energy.

Trump said India has pledged to purchase more than $500 billion in US products, including energy, technology, agricultural products, and coal.

Indian Prime Minister Modi publicly welcomed the tariff cut. Posting on X, he said he was “delighted that Made in India products will now have a reduced tariff of 18 percent,” and he thanked Trump on behalf of India’s population. Modi said cooperation between the two nations “benefits our people and unlocks immense opportunities for mutually beneficial cooperation.”

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