US President Donald Trump on Monday announced that India and the US have reached a trade agreement. In a post on Truth Social, the US President said that American tariffs would be reduced, and demanded that India stop buying Russian oil.
Doval also told Rubio that India will not be bullied by US President Trump and his top aides, New Delhi officials familiar with the meeting said.Prime Minister Narendra Modi also welcomed the announcement, thanking Trump for reducing tariffs on Indian-made goods.
However, months before the trade deal, National Security Adviser Ajit Doval visited Washington, where he told US Secretary of State Marco Rubio that he wanted to put the antagonism between the two countries behind them and return to negotiating a trade deal, Bloomberg reported.
According to reports, Doval also told Rubio that India will not be bullied by US President Trump and his top aides, New Delhi officials familiar with the meeting said.
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The national security adviser also told Rubio that India is also willing to wait out Trump’s term, but the US administration wants to tone down its public criticism in order to get relations back on track, according to Bloomberg.
The meeting allegedly took place in early September, shortly after Prime Minister Modi held talks with Russian President Vladimir Putin and Chinese President Xi Jinping.
Now, months after the alleged Doval-Rubio meeting, Trump has announced a trade deal with lower tariffs and expanded market access. India has confirmed the tariff reduction part of the agreement.
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While Modi’s post confirmed tariff relief, it did not explicitly mention a trade deal or pledge. Purchase of Russian oil or zero tariffs on US goods.
In a post on X, Prime Minister Modi said, “When two large economies and the world’s largest democracies work together, it benefits our people and opens up enormous opportunities for mutually beneficial cooperation.”
“President Trump’s leadership is vital for world peace, stability and prosperity. India fully supports his efforts for peace. I look forward to working closely with him to take our partnership to unprecedented heights,” Modi added.
Union Minister Ashwini Vaishnav called the deal a “win-win deal” that would benefit citizens and industries of both countries.
Apart from the Russian oil and tariff cuts, Trump also said India has agreed to buy more energy from the US and potentially Venezuela, and will reduce its tariff and non-tariff barriers against US goods to zero.
Trump wrote on Truth Social that it was an honor to speak with Modi, calling him “one of his greatest friends” and a “strong and respected leader”. He said both leaders are “two people who get things done.”
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“Out of friendship and respect for Prime Minister Modi and, at his request, effective immediately, we have agreed to a trade agreement between the United States and India, whereby the United States will charge a reduced reciprocal tariff, bringing it down from 25% to 18%. They will likewise move to reduce their tariff and non-tariff barriers against the United States,” the US president said.
He also said that India is committed to “buy American” at a much higher level, including $500 billion worth of US goods and energy.
