India–US Seal Trade Reset: 18% Tariff Cut, $500 Billion Pledge, and Claims on Russian Oil

India and the United States have announced a major trade reset after months of tense negotiations. On Monday, US President Donald Trump revealed a new trade deal with India that lowers reciprocal tariffs and promises wider market access. He also claimed that India would stop buying Russian oil and sharply increase imports from the US.

Soon after, Prime Minister Narendra Modi confirmed a key part of the announcement. He said Indian exports to the US will now face an 18% tariff. This marks a clear reduction from the earlier 25% reciprocal levy. The move brings immediate relief to Indian exporters and signals a thaw in strained trade ties.

The announcement followed a phone call between Trump and Modi. Talks between the two sides had dragged on for nearly a year. During this period, India faced some of the highest US tariffs globally. Friction also grew over energy ties with Russia and broader geopolitical issues.

After the call, Modi took to social media to welcome the tariff cut. He thanked Trump for reducing duties on “Made in India” products. He said cooperation between two large democracies creates opportunities and benefits people on both sides. However, Modi did not mention a detailed trade deal or any commitments on oil or large-scale purchases.

Union minister Ashwini Vaishnaw later confirmed that India and the US had reached a trade deal. He described it as a “win-win” outcome for industries and citizens of both countries. His statement reinforced the tariff relief but stopped short of backing Trump’s broader claims.

The sequence of announcements drew attention. US Ambassador to India Sergio Gor first flagged the call on social media. Trump then posted a long message on Truth Social. Modi responded nearly two hours later. Gor called the deal a major boost and said India–US ties hold limitless potential.

In his post, Trump framed the agreement as far-reaching. He said India would cut tariffs and non-tariff barriers on US goods to zero. He also claimed India committed to buying over $500 billion worth of American energy, technology, agriculture, coal, and other products. Trump added that India would halt Russian oil purchases and shift energy imports to the US and possibly Venezuela.

Trump linked the oil shift to broader efforts to end the Russia–Ukraine war. He said the deal would take effect immediately. He also said the US would drop an additional 25% punitive tariff that Washington had tied to India’s Russian oil imports.

A White House official echoed part of this claim. The official said the punitive oil-linked tariff would be removed as India agreed to stop such imports. This step, the official said, brings the final tariff down to 18%.

US officials welcomed the development. Under Secretary of State Jacob Helberg said the deal would deepen industrial cooperation and accelerate joint projects. He pointed to critical minerals and technology as priority areas. External Affairs Minister S Jaishankar is expected to attend a key dialogue on critical minerals in Washington soon.

So far, confirmed facts remain limited. India has publicly acknowledged the 18% tariff rate. Ministers have confirmed a concluded trade deal. Claims on zero tariffs for US goods, $500 billion purchases, and a Russian oil halt rest largely on US statements.

The breakthrough comes at a sensitive time. Trade talks began during Modi’s US visit last February. Since then, both sides held multiple negotiation rounds. Tensions peaked after Washington imposed steep tariffs on Indian goods. The new announcement suggests a reset, even as details await formal text.