India agreed to buy $500 billion in U.S. energy, precious metal, coal, and other products as part of the agreement.
President Donald Trump removed a 25 percent punitive tariff on all imports from India over its purchases of Russian oil, the White House announced Friday.
“The Interim Agreement between the United States and India will represent a historic milestone in our countries’ partnership, demonstrating a common commitment to reciprocal and balanced trade based on mutual interests and concrete outcomes,” the two countries said in a joint statement.
Trump agreed to slash U.S. tariffs on Indian goods to 18 percent from 50 percent in exchange for India halting its purchases of Russian oil and opening markets to American goods.
India was buying about one-third—around 1.215 million barrels per day—of its total oil imports from Russia, the country’s top supplier of crude. The volume dropped in January under pressure from Western sanctions as refiners looked for alternative suppliers.
The agreement between Trump and India’s Prime Minister Narendra Modi will include more market access commitments and support more resilient supply chains.
Trump announced the deal on Truth Social Feb. 2, saying India had agreed to move forward with a trade agreement after speaking with Modi.
“He agreed to stop buying Russian Oil, and to buy much more from the United States, and, potentially, Venezuela,” Trump posted. “This will help end the war in Ukraine, which is taking place right now, with thousands of people dying each and every week!”
The president said he expected the U.S. relationship with India to be “even stronger going forward.”
“Prime Minister Modi and I are two people that get things done, something that cannot be said for most,” Trump stated.
As part of the agreement, India will eliminate or reduce tariffs on all U.S. industrial goods and a wide range of food and agricultural products, including dried grains, red sorghum for animal feed, nuts, fresh and processed fruit, soybean oil, wine and spirits, and other products.
Modi praised the agreement.
“When two large economies and the world’s largest democracies work together, it benefits our people and unlocks immense opportunities for mutually beneficial cooperation,” Modi posted on social media.
