500 billion to buy American goods…a new trade agreement between America and India

Trump said on his Truth Social platform after his call with Modi that the latter agreed to stop buying Russian oil and pledged to buy more oil from the United States, and perhaps from Venezuela.

Reducing duties on Indian imports

He added: As a matter of friendship and respect for Modi, the United States will reduce its duties on Indian imports from 25 to 18 percent, provided that New Delhi cancels its duties on American products.

He confirmed that India will buy American goods worth more than $500 billion.
Modi welcomed the agreement, saying on the X platform: "On behalf of 1.4 billion Indians, I sincerely thank President Trump for this wonderful announcement"

He added: "When two great economies and the world’s two largest democracies work together, it benefits our people and opens enormous horizons for mutually beneficial cooperation."

Washington confirmed that it will control the production and sale of Venezuelan oil following the military operation that resulted in the arrest of former President Nicolas Maduro in early January.

The US President had previously confirmed months ago that India would not buy oil from Russia, which, if it happened, would deprive Moscow of vital revenues that Washington says are used to finance the war in Ukraine.

Indian goods

Last year, Trump imposed customs tariffs of 100%. 25 percent on all Indian goods, as part of a trade war he launched against several countries, including trading partners of the United States.

Then he decided in August to impose a 25 percent customs tariff on a number of Indian products due to India’s purchases of Russian oil.

A high-ranking American official told Agence France-Presse that the agreement announced on Monday puts an end to this tariff.