Trump revealed the deal following a phone call with Indian Prime Minister Narendra Modi, stating that New Delhi would shift oil imports toward the United States and potentially Venezuela. The White House confirmed it is rescinding a punitive 25% duty that had been imposed over India’s continued Russian oil imports, on top of an existing reciprocal tariff.
Trump said India also committed to significantly increasing purchases of U.S. energy, technology, agricultural, and other goods, adding that India plans to reduce tariffs and non-tariff barriers on American products to near zero.
Financial markets reacted positively to the announcement, with U.S.-listed Indian companies gaining sharply. Shares of Infosys, Wipro, and HDFC Bank rose, while the iShares MSCI India exchange-traded fund also posted gains, reflecting improved investor sentiment.
The agreement marks a major shift in U.S.-India trade relations and comes amid Washington’s broader efforts to curb global reliance on Russian energy following the Ukraine war.
