Modi agreed to ‘BUY AMERICAN’, halt Russian oil as US-India trade deal cuts tariffs: Trump

US President Donald Trump has announced a trade agreement with India following a conversation with Prime Minister Narendra Modi on February 2, revealing that India has agreed to halt Russian oil purchases and increase American energy imports.

"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 (s.i.c)," Trump wrote on Truth Social.

According to Trump's account, the discussion covered multiple issues, including trade and ending the war in Ukraine. "He agreed to stop buying Russian Oil, and to buy much more from the United States and, potentially, Venezuela. This will help END THE WAR in Ukraine," Trump stated.

The president said India had committed to purchasing over $500 billion worth of American energy, technology, agricultural, coal and other products, describing Modi as having pledged to "BUY AMERICAN, at a much higher level".

Trump also announced an immediate trade deal under which the United States will reduce its reciprocal tariff on India from 25 per cent to 18 per cent. "They will likewise move forward to reduce their Tariffs and Non-Tariff Barriers against the United States, to ZERO," he added.

Modi confirmed the conversation in a post on X, expressing gratitude for the tariff reduction. "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," he wrote.

The Indian prime minister emphasised the strategic importance of the bilateral relationship. "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 stated, adding that he looked forward to working closely with Trump "to take our partnership to unprecedented heights".

Modi also backed Trump's broader foreign policy efforts, saying, "President Trump's leadership is vital for global peace, stability, and prosperity. India fully supports his efforts for peace."

The announcement came after Trump had earlier shared an image of India Today magazine's "Newsmakers of the Year 2025" cover featuring both leaders with the headline "The Mover & The Shaker".

The developments coincided with Indian External Affairs Minister S Jaishankar's three-day visit to Washington, suggesting the discussions may have been planned in advance.