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The United States (US) and India have taken a major step towards a trade agreement after Prime Minister Narendra Modi agreed to stop buying Russian oil and may instead purchase it from Venezuela.
President Trump announced the understanding on his Truth Social platform saying Washington would reduce duties on Indian goods while New Delhi agreed to remove trade barriers and change its oil buying policy.
The US president said the United States would cut tariffs on India to 18% from 25% and also drop 25% extra penalty imposed because the subcontinent country continued purchasing crude from Russia.
— Rapid Response 47 (@RapidResponse47) February 2, 2026
He added that India was committed to stopping Russian oil imports and instead increasing purchases from American suppliers and possibly Venezuela, a move he claimed could help ease the Russia‑Ukraine conflict.
The developement followed a phone call between the two leaders which also covered the war in Eastern Europe and came days after India and the European Union finalised their own long awaited trade deal.
While welcoming the agreement on social media, PM Modi said that he was delighted with the outcome, stressing that cooperation between large democracies creates opportunities and benefits people on both sides.
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.
When two large economies and the…
— Narendra Modi (@narendramodi) February 2, 2026
Trump said he accepted the request of PM Modi for a deal immediately noting that India would lower all tariffs and non tariff barriers on American goods and sharply expand purchases across several major sectors.
He added that India plans to buy more than five hundred billion dollars worth of United States products including energy technology agriculture and coal strengthening long term commercial ties between the countries.
It worth noting that the US‑India trade ties have been tense since August 2025, when the US imposed 50% tariffs on Indian goods, including a 25% penalty over India’s purchase of Russian oil.
