India and the United States agreed on a trade deal, US President Donald Trump said on Monday, further adding that New Delhi committed to “buying more than $500 billion worth” of American products. The announcement signals a major shift in trade ties after months of tariff tensions, with officials revealing that the agreement spans multiple strategic sectors — and including agriculture.
Also read: Top 7 points Trump says he agreed on with PM ModiAn Indian government official told Reuters that India’s commitment to purchase US goods covers petroleum, defence, electronics, pharmaceuticals, telecom products and aircraft. The official also said the trade deal includes some agriculture products.
Negotiations toward a more comprehensive agreement covering additional sectors will continue, the source told Reuters.
Also read: How US blinked and said yes to trade deal with India US also confirmed that the trade deal includes more access for American agricultural products in India. US secretary of agriculture Brooke Rollins wrote on X: “New US-India deal will export more American farm products to India's massive market, lifting prices, and pumping cash into rural America."
"In 2024, America's agricultural trade deficit with India was $1.3 billion. India's growing population is an important market for American agricultural products and today's deal will go a long way to reducing this deficit," she added.
Trump framed the deal as part of a wider geopolitical and economic strategy. He said tariffs on Indian goods would be lowered to 18%, down from the 50% (25% reciprocal tariffs and 25% punitive tariff over India's purchase of Russian crude), and that India would reduce import taxes on US goods to zero. He also tied the trade breakthrough to energy, saying Modi agreed to stop buying Russian oil.
“This will help END THE WAR in Ukraine, which is taking place right now, with thousands of people dying each and every week!” Trump said in a Truth Social post.
Prime Minister Narendra Modi welcomed the deal saying he was “delighted” by the tariff reduction and that Trump’s “leadership is vital for global peace, stability, and prosperity.” He added, “I look forward to working closely with him to take our partnership to unprecedented heights”.
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