Donald Trump announces 'trade deal' with India after Modi call

Washington: US President Donald Trump announced a "trade deal" with India on Monday after speaking to Prime Minister Narendra Modi, saying New Delhi agreed to stop buying Russian oil and may purchase it instead from Venezuela.

Trump said that "out of friendship and respect" for Modi, the United States would lower its reciprocal tariff rate from 25 per cent to 18 per cent, while India would reduce tariffs on US goods to zero.

The move comes after months after Trump pressing India to cut its reliance on cheap Russian crude. India has taken advantage of slacked Russian oil prices as much of the world has sought to isolate Moscow for its February 2022 invasion of Ukraine.

Trump said that India would also start to reduce its import taxes on US goods to zero and buy $500 billion worth of American products.

"Our amazing relationship with India will be even stronger going forward," the US President said. "Prime Minister Modi and I are two people that get things done."

"This will help END THE WAR in Ukraine, which is taking place right now, with thousands of people dying each and every week!" Trump said in a Truth social post announcing the tariff reduction on India.

Modi hails 'wonderful' Trump call

Indian Prime Minister Narendra Modi said Monday he had a "wonderful" phone call with US President Donald Trump and thanked him for reducing tariffs on Indian products.

"Wonderful to speak with my dear friend President Trump today. Delighted that Made in India products will now have a reduced tariff of 18%," he said in a post on X.