U.S. President Donald Trump announced a new trade deal with India after a phone call with Indian Prime Minister Narendra Modi, saying the two leaders have agreed on steps to deepen economic ties and realign trade priorities. Trump said in a social media post that reciprocal tariffs on Indian imports to the U.S. will be reduced from 25 percent to 18 percent, a move aimed at boosting bilateral commerce and making Indian goods more competitive in American markets. Modi also committed to ending oil purchases from Russia, pivoting New Delhi’s energy sourcing toward U.S. supplies, which Trump said could further strengthen economic and geopolitical cooperation.

The announcement marks a notable shift after months of tariff tensions between Washington and New Delhi and is likely to reshape trade dynamics between the world’s two largest democracies. Both sides emphasised a “strategic partnership” and the potential for expanded investment and market access.