What Narendra Modi and Donald Trump said about the India-US trade deal: Here's all we know

On Monday, US President Donald Trump announced a new trade deal between India and the US. While reciprocal tariffs were lowered in the deal and market access was expanded, the US claimed that India would stop buying oil from Russia and would be importing more American goods.

New Delhi has confirmed the reduction of reciprocal tariffs, and the deal was reached after a telephonic conversation between Prime Minister Narendra Modi and President Trump, Hindustan Times reported.

What did President Trump and Prime Minister Modi say about the deal?

In a post on Truth Social, President Trump wrote, "It was an Honor to speak with Prime Minister Modi, of India, this morning. He is one of my greatest friends and, a Powerful and Respected Leader of his Country. We spoke about many things, including Trade, and ending the War with Russia and Ukraine."

He added, "He agreed to stop buying Russian Oil, and to buy much more from the United States and, potentially, Venezuela." Trump also wrote about lowering reciprocal tariffs on India. He wrote, "Out of friendship and respect for Prime Minister Modi and, as per his request, effective immediately, we agreed to a Trade Deal between the United States and India, whereby the United States will charge a reduced Reciprocal Tariff, lowering it from 25% to 18%."

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The US President further wrote, "They will likewise move forward to reduce their Tariffs and Non Tariff Barriers against the United States, to ZERO. The Prime Minister also committed to "BUY AMERICAN," at a much higher level, in addition to over $500 BILLION DOLLARS of U.S. Energy, Technology, Agricultural, Coal, and many other products."

Prime Minister Narendra Modi took to X to confirm the deal. He wrote, "Wonderful to speak with my dear friend President Trump today. 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 for this wonderful announcement."

US announces deal after India-EU FTA

The announcement comes days after India and the European Union sealed a Free Trade Agreement. Both sides called it the "mother of all deals."

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The breakthrough follows nearly a year of negotiations. India and the US had formally launched trade talks during Prime Minister Narendra Modi's visit to the US last February. Since then, the two sides held six formal negotiation rounds and several informal discussions. A US delegation led by the deputy trade representative also visited India in December 2025, Hindustan Times reported.

Before this, trade relations had faced strain. Washington had imposed 50 per cent tariffs on Indian goods, including a 25 per cent penalty linked to India's purchase of Russian oil.